Bond Market Update

Long End Turns Positive

• U.S. Treasuries have climbed off their morning lows with the long bond turning positive about 90 minutes ago while shorter tenors have also narrowed their losses, but they remain in negative territory. The bounce off opening lows is inviting some optimism that Treasuries may be able to build on last week's rally that pressured yields to their lowest levels of the month. Thanks to the bounce, the 30-yr yield is now seeking its lowest close since mid-October after briefly touching its 50-day moving average (4.408) at today's morning low. Elsewhere, the S&P 500 (+0.2%) is defending its modest gain while the Nasdaq (+0.9%) remains ahead.
• Yield Check:
  • 2-yr: +4 bps to 4.20%
  • 3-yr: +3 bps to 4.14%
  • 5-yr: +4 bps to 4.09%
  • 10-yr: +1 bp to 4.19%
  • 30-yr: -1 bp to 4.36%