Bond Market Update

Gains Defended

• U.S. Treasuries trade a bit below their morning highs, but above their starting levels after spending the past couple hours inside a sideways range. Intraday action has unfolded at a very slow pace, which is not surprising given yesterday's Thanksgiving closure and today's lack of domestic economic data. Equities, however, have enjoyed a steady climb with the S&P 500 (+0.7%) now up 5.9% for the month. Barring a volatile finish, the 10-yr yield is on track to surrender 20 basis points for the week while the 2-yr yield is down 19 basis points from last Friday's settlement. Thanks to this week's rally, the 2-yr yield is now up just two basis points for the month while the 10-yr yield is up seven basis points since the end of October.
• Yield Check:
  • 2-yr: -3 bps to 4.18%
  • 3-yr: -4 bps to 4.12%
  • 5-yr: -3 bps to 4.09%
  • 10-yr: -4 bps to 4.21%
  • 30-yr: -4 bps to 4.39%