Bond Market Update

Gains Extended

• U.S. Treasuries trade on their highs after extending their morning bounce off early lows. Treasuries returned to their opening levels about two hours ago while recent trade has seen a push to fresh highs amid ongoing weakness in equities, which has the S&P 500 down 1.0% today, on course to surrender 2.7% for the week. The Nasdaq (-1.6%) underperforms, extending this week's retreat to 4.4%. The recent push to highs in Treasuries pressured yields on 5s and longer tenors back below their respective 50-day moving averages while the 2-yr yield slipped below its 50-day moving earlier today. In Washington, the Senate will hold a vote to end the shutdown today with another vote planned for later this week if today's attempt produces another failure to reach the 60 vote threshold.
• Yield Check:
  • 2-yr: -3 bps to 3.54%
  • 3-yr: -3 bps to 3.55%
  • 5-yr: -3 bps to 3.66%
  • 10-yr: -2 bps to 4.08%
  • 30-yr: UNCH at 4.69%