Bond Market Update

Bounce Extended

• U.S. Treasuries have seen an extension of their rebound off morning lows with the long bond remaining ahead. The ongoing bounce has reversed yesterday's increase in yields on the 10-yr note and the 30-yr bond while the 2-yr yield is now little changed for the week. Today's advance is boosting hopes for a relief rally after heavy selling drove the 10-yr yield higher by 85 basis points between mid-September and yesterday's close.
• Yield Check:
  • 2-yr: -1 bp to 4.27%
  • 3-yr: -2 bps to 4.24%
  • 5-yr: -3 bps to 4.27%
  • 10-yr: -5 bps to 4.40%
  • 30-yr: -7 bps to 4.57%