Bond Market Update

Post-CPI Gains Narrowed

• U.S. Treasuries have backed down from post-CPI highs with the long bond turning negative while the 10-yr note is back to flat and shorter tenors continue trading in the green. The early volatility in Treasuries has been accompanied by some pressure on equities with the Nasdaq (-0.2%) showing relative weakness while small caps continue outperforming with the Russell 2000 (+0.8%) holding a solid gain.
• Yield Check:
  • 2-yr: -4 bps to 4.28%
  • 3-yr: -6 bps to 4.25%
  • 5-yr: -4 bps to 4.28%
  • 10-yr: UNCH at 4.43%
  • 30-yr: +2 bps to 4.60%