Bond Market Update

Opening Gains Maintained

• U.S. Treasuries are hanging onto modest early gains after spending the first couple hours of action in a sideways range. The final session of the Christmas-shortened week was expected to be quiet and it has lived up to that billing so far. Treasuries notched fresh highs shortly after the cash open before dipping back to levels seen at the start of the cash session. Like Treasuries, stocks have started the day on a quiet note with the S&P 500 sitting just above its flat line while small caps lag, resulting in relative weakness in the Russell 2000 (-0.5%).
• Yield Check:
  • 2-yr: -3 bps to 3.48%
  • 3-yr: -3 bps to 3.53%
  • 5-yr: -3 bps to 3.69%
  • 10-yr: -2 bps to 4.12%
  • 30-yr: -1 bp to 4.79%