Bond Market Update

Gains Defended

• U.S. Treasuries remain near their best levels of the session with longer tenors trading ahead. The market reached highs around 10:00 ET, followed by a sideways drift just below the best levels of the day. The sideways action has accompanied a bounce in equities, which has lifted the S&P 500 (+0.1%) into positive territory. On a side note, the U.S. Treasury announced earlier that it will increase the size of its February 10-, 20-, and 30-yr auctions by three billion apiece. Next week will see 3-, 10-, and 30-yr offerings totaling $125 bln.
• Yield Check:
  • 2-yr: -5 bps to 4.17%
  • 3-yr: -6 bps to 4.19%
  • 5-yr: -9 bps to 4.23%
  • 10-yr: -10 bps to 4.41%
  • 30-yr: -11 bps to 4.64%