Bond Market Update

Early Gains Extended

• U.S. Treasuries trade on their highs after rising off their opening levels. Treasuries opened the day in positive territory, adding to their gains immediately after the start. The market found some resistance as equities climbed out of the gate, but soon rallied to fresh highs after the release of a disappointing Existing Home Sales report for June (3.89 mln; Briefing.com consensus 4.00 mln), which showed that sales slowed to levels last seen at the end of 2023. Longer tenors displayed relative strength out of the gate, but the short end is slightly ahead now with yields on 5s and shorter tenors slipping to fresh lows for the week.
• Yield Check:
  • 2-yr: -3 bps to 4.49%
  • 3-yr: -4 bps to 4.26%
  • 5-yr: -4 bps to 4.14%
  • 10-yr: -4 bps to 4.22%
  • 30-yr: -3 bps to 4.45%