Bond Market Update

Maintaining Modest Gains

• U.S. Treasuries hover just below session highs that were recorded a couple hours ago with the front end maintaining its slight outperformance over longer tenors. Overall, today's session has been a sleepy affair that has returned yields to little changed for the week ahead of next week's acceleration in earnings reporting activity, three Treasury note auctions, and an FOMC meeting. The two-day FOMC Meeting will conclude with a rate decision and a press conference on Wednesday, but a change to the fed funds rate range is not expected at this time. Before then, the U.S. Treasury will auction $69 bln in 2-yr notes and $70 bln in 5-yr notes on Monday, followed by a $44 bln 7-yr note sale on Tuesday.
• Yield Check:
  • 2-yr: -2 bps to 4.26%
  • 3-yr: -3 bps to 4.32%
  • 5-yr: -2 bps to 4.42%
  • 10-yr: -2 bps to 4.62%
  • 30-yr: -2 bps to 4.85%