Bond Market Update

Early Gains Narrowed

• U.S. Treasuries have retreated from session highs that were reached in the late morning with the long bond returning to little changed while shorter tenors are hanging onto a portion of their gains. Treasuries backpedaled from their highs in the late morning as equities bounced from a weak start. The early advance pressured the 10-yr yield below its 50-day moving average (4.085%) while the recent pullback returned the benchmark yield to that level. The 10-yr yield is currently on track to surrender six basis points for the week while the 2-yr yield is down eight basis points for the week.
• Yield Check:
  • 2-yr: -3 bps to 3.53%
  • 3-yr: -3 bps to 3.52%
  • 5-yr: -3 bps to 3.65%
  • 10-yr: -2 bps to 4.09%
  • 30-yr: UNCH at 4.73%