Bond Market Update

Slippery Slope

• A bit of a slippery slope in the Treasury market, as yields across the curve have risen 3-5 basis points in the last 40 minutes or so without a clear news catalyst.
• The 10-yr note yield, at 4.18%, is retesting late September levels, while the 20-yr bond yield, at 4.82%, is at its highest since early September.
• Stocks are mixed, with little change across the major indices.
• The yen continues to weaken against the dollar (USD/JPY +0.3% to 155.87), as JGB yields continue to rise. 10-yr JGB up two basis points to 1.97%.
• Yield check:
  • 2-yr: +4 bps to 3.60%
  • 3-yr: +5 bps to 3.64%
  • 5-yr: +5 bps to 3.77%
  • 10-yr: +4 bps to 4.18%
  • 30-yr: +4 bps to 4.83%