Bond Market Update

Early Gains Maintained

• U.S. Treasuries have spent the better part of the past two hours in a sideways range, hanging onto modest gains that were recorded during an early-morning run to highs. Shorter tenors trade a bit closer to their highs than the long end, but yields are down about four basis points across the curve. The early news flow has been light, which is not a surprise given the equity market's closure, but it is worth noting that Philadelphia Fed President (non-voter) Harker spoke this morning, saying that a pause in rate cuts is appropriate given high uncertainty, adding that it is not clear what the longer-run path of the fed funds rate range looks like.
• Yield Check:
  • 2-yr: -3 bps to 4.26%
  • 3-yr: -4 bps to 4.32%
  • 5-yr: -4 bps to 4.43%
  • 10-yr: -3 bps to 4.66%
  • 30-yr: -3 bps to 4.90%