Bond Market Update

Long End Lags

• U.S. Treasuries have continued navigating a sideways range near their lowest levels of the session. The market added to its losses shortly after the open, followed by a sideways drift that is keeping the 30-yr yield at its highest level since early September. Meanwhile, yields on shorter tenors remain below this week's highs that were notched ahead of Wednesday's release of the December FOMC Statement. Assuming a steady finish, the 2-yr yield is on track to surrender three basis points for the week while the 30-yr yield is up seven basis points from last Friday's settlement.
• Yield Check:
  • 2-yr: UNCH at 3.53%
  • 3-yr: +2 bps to 3.59%
  • 5-yr: +3 bps to 3.75%
  • 10-yr: +5 bps to 4.19%
  • 30-yr: +7 bps to 4.86%