Bond Market Update

No More Gains

• Treasuries have coughed up their overnight gains with participants selling into the early strength.
• The euro is getting clobbered today as growth and policy rate divergences with the U.S. persist and threaten parity with the greenback. EUR/USD -1.0% to 1.0247
• The weakness in the euro is underpinning the strength in the U.S. Dollar Index, which is up 0.8% to 109.38, trading at its highest level since September 2022.
• Yield check:
  • 2-yr: +2 bps to 4.26%
  • 3-yr: +2 bps to 4.29%
  • 5-yr: +2 bps to 4.40%
  • 10-yr: +2 bps to 4.59%
  • 30-yr: +3 bps to 4.81%