Bond Market Update

Post-PPI Selling Reversed

• U.S. Treasuries are back near their starting levels after seeing some brief volatility in the wake of the June PPI report, which did not follow the pleasing tone set by the CPI report. However, the market has been resilient, returning to the day's starting levels just 30 minutes after the report was released. The next 90 minutes saw shorter tenors climb into positive territory while 10s and 30s are finding some resistance just below yesterday's closing levels. Equities are off to a strong start with the S&P 500 (+0.7%) and Nasdaq (+1.0%), looking to gain 1.0% and 0.6% for the week while the Russell 2000 (+1.7%) is building on yesterday's outperformance, extending this week's advance to 6.7%.
• Yield Check:
  • 2-yr: -3 bps to 4.48%
  • 3-yr: -1 bp to 4.26%
  • 5-yr: UNCH at 4.13%
  • 10-yr: +1 bp to 4.20%
  • 30-yr: +1 bp to 4.42%