Bond Market Update

Short End Ahead

• Recent action saw the 2-yr note hit a fresh high for the day while longer tenors remain just a bit below their highs that were notched just before 11:00 ET. With the recent extension of its gain, the 2-yr note continues creeping closer to its high from January. The pace of the move has gained increased attention and will invite speculation about economic growth should the yield pierce through its January low in the coming days. The 2-yr yield is down 15 basis points today alone after falling 38 basis points in July. The potential for volatility remains elevated ahead of the weekend since the market will receive the Employment Situation report for July (Briefing.com consensus 170,000; prior 206,000) tomorrow at 8:30 ET.
• Yield Check:
  • 2-yr: -15 bps to 4.19%
  • 3-yr: -14 bps to 4.00%
  • 5-yr: -14 bps to 3.86%
  • 10-yr: -12 bps to 3.99%
  • 30-yr: -10 bps to 4.27%