Bond Market Update

Opening Gains Reversed

• U.S. Treasuries have retreated from their opening levels, sending 10s and 30s into the red while shorter tenors remain in the green, though they too have faced steady pressure since the cash start. The early retreat makes for a continuation of this week's bumpy action, though even with the recent volatility, Treasuries are little changed for the week with yields on 2s and 10s up about three basis points for the week. Not long ago, Kansas City Fed President (FOMC voter) Schmid said that he is leaning against a December rate cut, shortly after Minneapolis Fed President (2026 voter) Kashkari said that he did not support the October cut and is not sure about December. Equities are of to a lower start, sending the S&P 500 (-0.5%) into negative territory for the week (-0.4%).
• Yield Check:
  • 2-yr: UNCH at 3.59%
  • 3-yr: -1 bp to 3.58%
  • 5-yr: UNCH at 3.70%
  • 10-yr: +1 bp to 4.12%
  • 30-yr: +2 bps to 4.73%