Bond Market Update

Bounce Extended

• U.S. Treasuries have continued their rebound off opening lows with longer tenors turning positive, though they remain a bit behind the short end. The market continued its bounce through a report indicating that President Trump will not speak with China's President Xi after earlier reports said that the two leaders would communicate in search of a deal that would avoid the implementation of tariffs on imports from China. The recent gains have pressured the 5-yr yield back to its 50-day moving average (4.320%) while the 10-yr yield remains about four basis points above the 50-day moving average of its own. Equities are hanging onto their gains with the S&P 500 (+0.5%) trailing the Nasdaq (+1.0%).
• Yield Check:
  • 2-yr: -5 bps to 4.22%
  • 3-yr: -4 bps to 4.25%
  • 5-yr: -3 bps to 4.33%
  • 10-yr: -2 bps to 4.53%
  • 30-yr: -1 bp to 4.76%