Bond Market Update

Long End Remains Behind

• U.S. Treasuries have added to their initial losses with longer tenors remaining at the forefront of the selling while the 2-yr note is essentially unchanged from yesterday's settlement. Today's early pressure in longer tenors has lifted yields off three-week lows, though they are still well below their January highs with the 10-yr yield hovering 16 basis points below its January 14 high, which marked a level not seen since early November 2023. Equities are facing some early pressure with the Nasdaq (-0.5%) showing relative weakness as technology stocks give back some of their outperformance from yesterday, which followed the announcement of a $500 bln AI infrastructure fund.
• Yield Check:
  • 2-yr: UNCH at 4.30%
  • 3-yr: +1 bp to 4.36%
  • 5-yr: +4 bps to 4.46%
  • 10-yr: +5 bps to 4.65%
  • 30-yr: +6 bps to 4.88%