Bond Market Update

Tight Ranges

• The Treasury market isn't doing much today, as yields across the curve have been confined to a tight trading range that have them little changed from Friday's settlement levels.
• It is the semblance of a wait-and-see trade in front of some key market-moving catalysts later in the week, culminating with Fed Chair Powell's speech on Friday at the Jackson Hole Economic Symposium.
• While the market isn't doing much today, it has made a big move already this month. Maturities from the 2-yr note to the 30-yr bond have seen their yields decrease between 17 and 23 basis points in August, spurred by rate-cut optimism (among other things).
• The market is hopeful that Fed Chair Powell will intimate that a rate cut is likely at the September FOMC meeting, so it is now waiting to see if what it has priced in comes to fruition.
• Yield check:
  • 2-yr:unch at 4.06%
  • 3-yr: -1 bp to 3.86%
  • 5-yr: -2 bps to 3.77%
  • 10-yr: -2 bps to 3.87%
  • 30-yr: -2 bps to 4.13%