Bond Market Update

The End Is Near

• Bonds continue to look good on the penultimate trading session of the year, which hasn't necessarily been great for bonds.
• Notably, the 2-yr note yield (4.25%) is sitting right where it started the year; however, yields for maturities ranging from the 3-yr note to the 30-yr bond are up between 27 and 73 basis points.
• Longer-dated securities have borne the brunt of the selling interest in a curve-steepening trade motivated by better-than-expected growth, sticky inflation, and deficit concerns. The 10-yr note yield (4.55%) is up 67 basis points and the 30-yr bond yield (4.76%) is up 73 basis points.
• Key metals futures prices settled today's session lower:
  • GC00-USA gold settled today's session $35.40 lower (-1.3%) at $2,618.60/oz
  • SI00-USA silver settled today's session $0.97 lower (-3.2%) at $29.43/oz
  • HG00 copper settled today's session $0.03 lower (-0.7%) at $4.10/lb
• Yield check:
  • 2-yr: -8 bps to 4.25%
  • 3-yr: -9 bps to 4.28%
  • 5-yr: -9 bps to 4.37%
  • 10-yr: -7 bps to 4.55%
  • 30-yr: -5 bps to 4.76%