Bond Market Update

Fresh Highs Set

• U.S. Treasuries trade on their highs after overcoming some slight softness in early trade. The morning dip from opening levels produced lows about 30 minutes after the cash start, but the market has been slowly grinding higher since then. The bounce accelerated a bit during the past hour as Treasuries rose past their opening highs. The bid in Treasuries comes alongside some weakness in equities, though the S&P 500 (-0.1%) has refused to deviate from its flat line after setting another record at the open. On a side note, Senate Majority Leader Thune said that it is unlikely for the Senate to have enough votes over the weekend to reopen the government, so the shutdown is on course to continue into next week.
• Yield Check:
  • 2-yr: UNCH at 3.54%
  • 3-yr: -1 bp to 3.55%
  • 5-yr: -1 bp to 3.67%
  • 10-yr: -2 bps to 4.09%
  • 30-yr: -3 bps to 4.69%