Bond Market Update

Holding Early Losses

• U.S. Treasuries hover near their starting levels with the long bond essentially unchanged from the open while shorter tenors trade a bit below their starting levels as the market reacts to what is expected to be a more growth-friendly agenda from the incoming Trump administration. The early selling has the 10-yr yield within five basis points of its high from July (4.493%) while the 2-yr yield is at a level last seen at the end of July. Equities are off to firmly higher start with the Russell 2000 (+4.7%) leading the early strength while the Dow (+3.2%), Nasdaq (+2.3%), and S&P 500 (+2.0%) follow.
• Yield Check:
  • 2-yr: +8 bps to 4.29%
  • 3-yr: +9 bps to 4.25%
  • 5-yr: +12 bps to 4.30%
  • 10-yr: +16 bps to 4.45%
  • 30-yr: +18 bps to 4.63%