Bond Market Update

Back on Lows

• U.S. Treasuries trade just above lows that were reached during the past hour. The market has seen some intraday volatility today, as modest opening losses quickly turned into slim gains, followed by a steady pullback that has sent all tenors to fresh lows. Longer tenors have been at the forefront of the reversal, lifting yields on 10s and 30s back to their respective 200-day moving averages. Barring a volatile finish, the 10-yr yield is on track to end June with a 16 bps decrease while the 2-yr yield is down 17 basis points since the end of May. For the quarter, the 2-yr yield is up ten basis points while the 10-yr yield has increased by 15 basis points this quarter.
• Yield Check:
  • 2-yr: UNCH at 4.72%
  • 3-yr: +1 bp to 4.51%
  • 5-yr: +4 bps to 4.34%
  • 10-yr: +6 bps to 4.35%
  • 30-yr: +7 bps to 4.50%