Bond Market Update

Short End Maintains Lead

• U.S. Treasuries trade in mixed fashion with the short end maintaining its early relative strength while the 10-yr note and the 30-yr bond hold modest losses. The market has spent the better part of the past four hours in a slow retreat from session highs with shorter tenors finding some support near the day's opening levels while longer tenors have faced a bit more pressure after outperforming yesterday. The morning advance briefly pressured the 30-yr yield past yesterday's low while the 10-yr yield slipped just below its 50-day moving average (4.170%) before late-morning selling lifted these yields off those levels. That said, the 30-yr yield is now coming up on the near confluence of its 200-day (4.409%) and 50-day (4.414%) moving averages, which could provide some short-term support for the long end. The 10-yr yield, for its part, is sitting just above its 200-day moving average (4.207%) after rising off its 50-day moving average.
• Yield Check:
  • 2-yr: -4 bps to 4.16%
  • 3-yr: -2 bps to 4.12%
  • 5-yr: -1 bp to 4.09%
  • 10-yr: +1 bp to 4.21%
  • 30-yr: +3 bps to 4.39%