Bond Market Update

Stocks Struggling

• Early stock market gains have evaporated with weakness in the mega-cap space weighing on the major indices. Have also seen a notable rollback in the Russell 2000 (flat), which had been up as much as 0.8%.
• Some of the pullback in stocks can be attributed to the move higher in Treasury yields. Selling activity in the Treasury market has cooled just a bit, yet yields remain closer to their highs for the session than their lows.
• 2s10s spread at 33 bps versus 33 bps at Tuesday's settlement.
• The U.S. Dollar Index (+0.7% to 109.28) remains strong; however, the greenback's strength has not undercut commodities, which are mostly higher today with WTI crude futures ($73.36, +1.64, +2.3%) a standout in that space.
• Yield check:
  • 2-yr: +1 bp to 4.25%
  • 3-yr: +2 bps to 4.29%
  • 5-yr: unch at 4.38%
  • 10-yr: +1 bp to 4.58%
  • 30-yr: +2 bps to 4.80%