Bond Market Update

Mixed Action Continues

• Longer-dated Treasuries have faced a bit more selling pressure in recent action with the 10-yr yield now 16 basis points below this year's high from April (4.737%). The continued weakness in longer tenors has been a limiting factor in the S&P 500's (+0.4%) attempt at a recovery while the short end is hanging onto a slim gain as the market continues watching the developments in Washington, where lawmakers are trying to avoid a government shutdown. However, President-elect Trump said that a government shutdown will take place if there is no agreement to extend or eliminate the debt ceiling.
• Yield Check:
  • 2-yr: -3 bps to 4.32%
  • 3-yr: UNCH at 4.34%
  • 5-yr: +5 bps to 4.43%
  • 10-yr: +9 bps to 4.58%
  • 30-yr: +11 bps to 4.76%