Bond Market Update

Selling Persists

• U.S. Treasuries are on their lows after their morning bounce attempt ran into pressure shortly after longer tenors climbed above their starting levels. Treasuries reached rebound highs around 10:00 ET, followed by a steady retreat that has lifted yields well above their opening levels. The renewed selling has yields on 5s and shorter tenors rising back above their highs from last week while yields on longer tenors remain below those highs, though the 10-yr yield is now within five basis points of its post-election high. The intraday selling has taken place even though the October Survey of Consumer Expectations from the New York Fed showed that year-ahead inflation expectations dipped to 2.9% from 3.0% while the three-year outlook decreased to 2.5% from 2.7%, and the five-year expectations dipped to 2.8% from 2.9%.
• Yield Check:
  • 2-yr: +10 bps to 4.35%
  • 3-yr: +11 bps to 4.31%
  • 5-yr: +12 bps to 4.32%
  • 10-yr: +13 bps to 4.44%
  • 30-yr: +11 bps to 4.58%