Bond Market Update

Home on the Range

• Following the rush of data this morning, the Treasury market settled into a narrow trading range that was accented by higher prices and lower yields.
• There is some chatter today that stocks are weak because they are short-term overbought, leaving them ripe for a consolidation trade. Some might make the opposite claim that Treasuries are stronger today because they were short-term oversold and due for a bounce, particularly longer-dated securities.
• Entering today, the 10-yr note yield was up 22 basis points for the month and the 30-yr bond yield was up 25 basis points.
• There was some modest weakness in the metals space today as gold, silver, and copper futures all settled lower.
  • GC00-USA gold settled today's session $8.80 lower (-0.3%) at $2,662.30/oz
  • SI00-USA silver settled today's session $0.15 lower (-0.5%) at $30.95/oz
  • HG00 copper settled today's session $0.04 lower (-0.9%) at $4.15/lb
• Yield check:
  • 2-yr: unch at 4.24%
  • 3-yr: unch at 4.22%
  • 5-yr: unch at 4.25%
  • 10-yr: -2 bps to 4.38%
  • 30-yr: -3 bps to 4.58%