Bond Market Update

Long End Maintains Lead

• U.S. Treasuries have had a strong start to the Friday session with longer tenors leading the way. Thanks to the early gains, most tenors are now firmly in the green for the week while the 2-yr note is back to little changed. With the early advance, the 10-yr yield is now down 20 basis points from its post-election peak, and it is down nine basis points for the week. Equities are off to a mixed start with the S&P 500 (+0.2%) extending this week's gain to 4.5% while the Nasdaq (-0.1%) has seen some light pressure, though it is still up 5.6% since last Friday's settlement. The Russell 2000 (+0.2%), meanwhile, is holding up well after gaining 8.0% for the week.
• Yield Check:
  • 2-yr: -2 bps to 4.20%
  • 3-yr: -3 bps to 4.15%
  • 5-yr: -5 bps to 4.14%
  • 10-yr: -7 bps to 4.27%
  • 30-yr: -8 bps to 4.46%