Bond Market Update

Opening Levels Revisited

• U.S. Treasuries are back near their starting levels after a slow retreat from session highs that were reached about two hours ago. The market attempted to recover from its lower start in morning trade, but the rebound found resistance once the 2-yr note made a brief appearance near its unchanged level. However, the recovery did not invite additional buying interest, so Treasuries drifted back down to their starting levels in slow fashion while equities have defended their gains with the S&P 500 (+0.9%) looking to secure a slightly higher finish for the week (+0.1%). Barring a volatile finish in the Treasury market, the 2-yr yield is on track to end the week lower by five basis points while the 10-yr yield is down four basis points since last Friday's settlement.
• Yield Check:
  • 2-yr: +2 bps to 3.48%
  • 3-yr: +3 bps to 3.53%
  • 5-yr: +3 bps to 3.69%
  • 10-yr: +3 bps to 4.15%
  • 30-yr: +3 bps to 4.83%