Bond Market Update

Sideways Drift in Progress

• U.S. Treasuries have seen very little movement since our last update, which leaves longer tenors ahead while the 2-yr note is little changed. Treasuries added to their starting gains during the first hour of action, but that move did not invite additional buying interest. Instead, the market dipped from highs, nestling into a sideways range near the day's starting levels. Action on the equity side has also been subdued, leaving the S&P 500 (+0.2%) just above its flat line. Barring a volatile finish, the 2-yr yield is on track to end the week with a 17-basis point increase while the 10-yr yield is up 15 basis points for the week.
• Yield Check:
  • 2-yr: UNCH at 4.04%
  • 3-yr: -2 bps to 3.86%
  • 5-yr: -5 bps to 3.79%
  • 10-yr: -6 bps to 3.94%
  • 30-yr: -6 bps to 4.23%