Bond Market Update

Early Advance Moderated

• U.S. Treasuries have backtracked from their highs over the past two hours, though overall action has remained confined to a narrow range. Treasuries inched down from their highs through the release of the New York Fed's Survey of Consumer Expectations for January, which showed that inflation expectations among consumers were unchanged at the one-year (3.0%) and three-year (3.0%) horizons, but the five-year outlook increased to 3.0% from 2.7%. The intraday backtracking has lifted yields on the 5-yr note and longer tenors back above their respective 50-day moving averages with the 10-yr yield currently flat for the day.
• Yield Check:
  • 2-yr: -2 bps to 4.26%
  • 3-yr: -1 bp to 4.29%
  • 5-yr: -1 bp to 4.33%
  • 10-yr: UNCH at 4.49%
  • 30-yr: +2 bps to 4.71%