Bond Market Update

Defending Post-CPI Gains

• U.S. Treasuries have dipped from their best levels of the day, but they remain above levels that were seen in immediate reaction to the December CPI report. The pace of today's action slowed considerably in recent trade with issues in the belly maintaining their lead. The 5-yr yield is hovering near a one-week low while the 2-yr yield has fallen past its 200-day moving average (4.336%) to its 50-day moving average (4.271%). Elsewhere, the greenback has recovered the bulk of its post-CPI loss, leaving the U.S. Dollar Index down just 0.1% at 109.18.
• Yield Check:
  • 2-yr: -8 bps to 4.28%
  • 3-yr: -11 bps to 4.36%
  • 5-yr: -13 bps to 4.46%
  • 10-yr: -12 bps to 4.67%
  • 30-yr: -10 bps to 4.89%