Bond Market Update

Short End Behind

• U.S. Treasuries sit on their lows after slipping from their opening levels. The trading day started with slim gains in the 5-yr note and longer tenors, but the entire complex notched highs just ten minutes after the cash start, followed by a slow retreat that has sent all tenors into the red. The long end outperformed at the start, and these issues remain ahead, but the market is on track to end the week with losses across the curve. The 2-yr yield is currently up five basis points for the week while the 30-yr yield is up ten basis points since last Friday's settlement. Equities are off to a modestly lower start with the S&P 500 (-0.3%) trimming this week's gain to 1.3%.
• Yield Check:
  • 2-yr: +3 bps to 3.63%
  • 3-yr: +3 bps to 3.52%
  • 5-yr: +2 bps to 3.53%
  • 10-yr: +1 bp to 3.75%
  • 30-yr: UNCH at 4.08%