Bond Market Update

Long End Maintains Early Lead

• Longer-dated Treasuries trade on their highs after adding to their initial gains while shorter tenors are a bit behind. The trading day started with slight relative strength up front that has been maintained so far this morning. Treasuries spent the first 90 minutes of action in a sideways range, rising to fresh highs not long ago. The early strength in the long end has pressured the 30-yr yield to its lowest level since early April while the 10-yr yield has returned to its September low. Not long ago, Treasury Secretary Bessent said at a press conference that a longer trade truce with China could be reached if China delays its restrictions on rare earth exports. Equities are off to a strong start with the S&P 500 (+1.2%) extending this week's gain to 2.6%.
• Yield Check:
  • 2-yr: +1 bp to 3.49%
  • 3-yr: +1 bp to 3.49%
  • 5-yr: UNCH at 3.60%
  • 10-yr: -1 bp to 4.01%
  • 30-yr: -2 bps to 4.60%