Bond Market Update

Fresh Highs Set

• U.S. Treasuries have overtaken their opening highs with the belly leading the way, brining yields toward their closing levels from Tuesday. The push to fresh highs followed the release of the latest Survey of Consumer Expectations from the New York Fed, which showed that three-year inflation expectations decreased by 60 basis points to 2.3%, reaching their lowest level since the survey began in 2013. Meanwhile, year-ahead expectations remained at 3.0% while the five-year outlook stayed at 2.8%.
• Yield Check:
  • 2-yr: -2 bps to 4.03%
  • 3-yr: -4 bps to 3.84%
  • 5-yr: -4 bps to 3.75%
  • 10-yr: -4 bps to 3.91%
  • 30-yr: -3 bps to 4.20%