Bond Market Update

Looking Ahead

• It has been a busy week for the Treasury market, even a bit frenetic with the whipsaw action surrounding the inflation reports.
• There should be more calm next week in terms of what the economic calendar will feature. The housing market will be in the spotlight with the release of the February NAHB Housing Market Index, January Housing Starts and Building Permits, and January Existing Home Sales.
• The FOMC Minutes for the January 28-29 meeting will be out on Wednesday, but with Fed Chair Powell's semi-annual monetary policy testimony this week, and a rash of other Fed officials talking about sitting tight on policy for the time being, those minutes shouldn't pack any market-moving punch.
• With the volatility seen in the Treasury market this week, it may surprise some to learn that yields across the curve are little changed from where they started the week. The 10-yr note yield at 4.48%, for instance, is down just one basis point for the week.
• Yield check:
  • 2-yr: -6 bps to 4.25%
  • 3-yr: -7 bps to 4.26%
  • 5-yr: -7 bps to 4.32%
  • 10-yr: -5 bps to 4.48%
  • 30-yr: -3 bps to 4.70%