Bond Market Update

Stocks Struggling

• Stocks are flagging today, with the S&P 500 and Nasdaq Composite both in danger of closing below their 50-day moving average, which they haven't done since the recovery rally began in April.
• Notwithstanding the weakness in stocks, Treasuries aren't commanding much of a safe-haven bid. That could be due to a sense that the stock market's struggles are short-term in nature, yet there is enough interest in the CBOE Volatility Index today (+11.7% to 22.11) to suggest there are worries market conditions will be volatile over the next 30 days and that protection against further downside is needed.
• Yield check:
  • 2-yr: -1 bp to 3.60%
  • 3-yr: -2 bps to 3.60%
  • 5-yr: -3 bps to 3.71%
  • 10-yr: -2 bps to 4.13%
  • 30-yr: -2 bps to 4.73%