Bond Market Update

Short End Resists Early Pressure

• U.S. Treasuries remain near their opening levels after a sideways start to the session. The entire complex started the day with slim losses, but Treasuries diverged a bit after the open with 5s and shorter tenors staging a modest bounce while the long bond has added to its loss. The 10-yr note has split the difference, staying near its starting mark. The early underperformance in the long bond has lifted its yield to its 200-day moving average (4.770%), an area where the market has bounced on a couple of occasions since early September. Equities are off to a higher start with the S&P 500 (+0.5%) trailing the Nasdaq (+0.9%).
• Yield Check:
  • 2-yr: -2 bps to 3.52%
  • 3-yr: -1 bp to 3.54%
  • 5-yr: UNCH at 3.67%
  • 10-yr: +1 bp to 4.11%
  • 30-yr: +2 bps to 4.76%