Bond Market Update

Longer Tenors Maintain Lead

• Recent action saw the 2-yr note slip into negative territory while longer tenors continue hanging on to their gains. The entire complex has seen some backtracking in recent trade, but longer tenors continue hovering near their morning lows while the short end has shown relative weakness. Elsewhere, equities have overcome a shaky start and they are now on fresh highs with the S&P 500 (+0.8%) extending its January gain to 2.8%.
• Yield Check:
  • 2-yr: +2 bps to 4.29%
  • 3-yr: +1 bp to 4.34%
  • 5-yr: UNCH at 4.41%
  • 10-yr: -3 bps to 4.58%
  • 30-yr: -4 bps to 4.80%