Bond Market Update

Early Strength Reversed

• U.S. Treasuries trade on their lows after a steady retreat from their best levels of the morning. Longer tenors reached session highs just as we published our last update while shorter tenors spent the morning in a retreat from their starting levels. The retreat accelerated over the past hour with the weakness up front spreading to the rest of the complex, which leaves the market on lows at this juncture. As mentioned earlier, today's strong start briefly sent the 30-yr yield to its lowest level since April while the 10-yr yield approached but never slipped past its September low. Interestingly, the recent slide to lows in Treasuries has taken place alongside some backtracking in the equity market after a strong start.
• Yield Check:
  • 2-yr: +3 bps to 3.51%
  • 3-yr: +4 bps to 3.52%
  • 5-yr: +3 bps to 3.63%
  • 10-yr: +2 bps to 4.04%
  • 30-yr: +1 bp to 4.63%