Bond Market Update

Losses Widened

• U.S. Treasuries trade on lows that were reached in the late morning. Longer tenors led the market lower out of the gate with the selling lifting yields on 10s and 30s past their respective 50-day moving averages to levels not seen since the end of May while the 5-yr yield has risen to a three-week high with the 50-day moving average of its own looming just above. Elsewhere, crude oil (+1.50, +1.8%, to $83.04) has climbed past its high from Friday to $83/bbl, seeking its best pit close since the end of April. Oil has gained more than $10/bbl over the past four weeks, boosting the cost of transportation. Equities have climbed off their early lows with the S&P 500 (+0.2%) trailing the Nasdaq (+0.6%).
• Yield Check:
  • 2-yr: +6 bps to 4.78%
  • 3-yr: +9 bps to 4.60%
  • 5-yr: +12 bps to 4.45%
  • 10-yr: +14 bps to 4.48%
  • 30-yr: +14 bps to 4.65%