Bond Market Update

Seeking Support

• U.S. Treasuries started the post-holiday Tuesday on a firmly lower note, but early action has seen a quick rebound off lows. The market added to its starting losses during the first few minutes of action, lifting the 2-yr yield past last week's high, while the 5-yr note found support near last week's low. Longer tenors, however, bounced well above lows from last week. The recent rebound has pressured yields on 10s and 30s below today's opening levels while yields on shorter tenors are essentially back where they started the cash session. Equities are off to a flat start in large cap indices while the Russell 2000 is giving back some of its solid gain from yesterday.
• Yield Check:
  • 2-yr: +7 bps to 4.32%
  • 3-yr: +8 bps to 4.28%
  • 5-yr: +8 bps to 4.27%
  • 10-yr: +6 bps to 4.37%
  • 30-yr: +3 bps to 4.51%