Bond Market Update

Fresh Lows Set

• Recent action saw some renewed pressure, which has lifted yields on all tenors to fresh highs for the week. Treasuries attempted to recover from their modestly lower start during the first two hours of action, but failed to make a sustained move into the green. The long bond is slightly ahead today, but even with today's outperformance, its yield has climbed to a level not seen since early September while yields on 5s and 10s hover near their November highs. Up front, the 2-yr yield remains about eight basis points below its November high as the market prepares for a rate cut next week.
• Yield Check:
  • 2-yr: +3 bps to 3.56%
  • 3-yr: +4 bps to 3.59%
  • 5-yr: +4 bps to 3.72%
  • 10-yr: +4 bps to 4.14%
  • 30-yr: +3 bps to 4.80%