Bond Market Update

Opening Gains Padded

• U.S. Treasuries trade on their highs with longer tenors maintaining their early outperformance. Treasuries began adding to their starting gains shortly after the open, encouraged by the prospect of a Treasury Secretary nominee, who is seen as a solid candidate by the market. The early strength in Treasuries has pressured yields on 5s and longer tenors to their lowest levels in at least two weeks while the 2-yr yield is slipping from its highest level of the month. Equities are off to a solid start with the S&P 500 (+0.6%) trailing the Russell 2000 (+1.5%).
• Yield Check:
  • 2-yr: -7 bps to 4.30%
  • 3-yr: -8 bps to 4.23%
  • 5-yr: -10 bps to 4.20%
  • 10-yr: -11 bps to 4.30%
  • 30-yr: -11 bps to 4.49%