Bond Market Update

Seeking Higher Finish

• U.S. Treasuries have bounced off their late-morning lows with shorter tenors leading the move, which has the entire complex trading in positive territory. The early selling found support once yields approached their highs from yesterday, followed by a steady bounce. Thanks to the move, the 2-yr yield is now down one basis point for the week while the 10-yr yield is up seven basis points since last Friday's settlement. The rebound in Treasuries has taken place alongside continued range-bound trade in equities with the S&P 500 (-0.1%) trimming this week's gain to 1.4% while the Dow (+0.2%) outperforms, looking to add 1.7% for the week.
• Yield Check:
  • 2-yr: -3 bps to 3.57%
  • 3-yr: -3 bps to 3.46%
  • 5-yr: -2 bps to 3.48%
  • 10-yr: -2 bps to 3.72%
  • 30-yr: -1 bp to 4.07%