Bond Market Update

Action Slows as Long Weekend Nears

• U.S. Treasuries have seen limited movement over the past three hours after longer tenors returned to little changed for the day. Granted, the market set fresh lows about an hour ago, but that move was followed by an uptick to levels from late morning trade. Meanwhile, equities have continued inching higher with the Nasdaq (+1.7%) leading the advance. Barring some late volatility, Treasuries are on track to register solid gains for the week with the 2-yr yield currently down 13 basis points from last Friday's settlement while the 10-yr yield is down 17 basis points for the week. Keep in mind that bond and equity markets will be closed on Monday when Donald Trump gets inaugurated as the 47th President of the United States, so there is potential for some early volatility on Tuesday, given speculation about the high likelihood of a raft of executive orders being implemented on Monday.
• Yield Check:
  • 2-yr: +3 bps to 4.27%
  • 3-yr: +3 bps to 4.33%
  • 5-yr: +1 bp to 4.41%
  • 10-yr: UNCH at 4.61%
  • 30-yr: -1 bp to 4.84%