Bond Market Update

Trading Range Narrows

• U.S. Treasuries trade a bit below their highs that were notched in the wake of the Personal Income/Outlays report for June. The market inched down from highs after 11:00 ET, but the pullback has been shallow, leaving the 10-yr yield within two basis points of its session low. Thanks to today's advance, the long bond has recovered the bulk of this week's loss while shorter tenors are on track for a higher finish to the week. The 2-yr yield is currently down 12 basis points from last week's settlement, while the 10-yr yield is down three basis points, and the 30-yr yield is up one basis point for the week.
• Yield Check:
  • 2-yr: -5 bps to 4.39%
  • 3-yr: -5 bps to 4.21%
  • 5-yr: -6 bps to 4.09%
  • 10-yr: -5 bps to 4.21%
  • 30-yr: -4 bps to 4.46%