Bond Market Update

Morning Lows Revisited

• U.S. Treasuries remain in negative territory, trading just above lows that were notched in morning trade. The market attempted a rebound during the past three hours, but found resistance near the day's opening levels, returning action toward the lowest levels of the day. The weakness in Treasuries is taking place despite continued pressure on equities, which is driving the S&P 500 (-0.7%) to a fresh low going into the afternoon. This puts the index on track for a 2.0% loss for the week while Treasury yields are now higher for the week with the 2-yr yield and the 10-yr yield up five basis points apiece.
• Yield Check:
  • 2-yr: +5 bps to 4.51%
  • 3-yr: +5 bps to 4.28%
  • 5-yr: +6 bps to 4.17%
  • 10-yr: +5 bps to 4.24%
  • 30-yr: +4 bps to 4.45%