Bond Market Update

Opening Losses Maintained

• U.S. Treasuries have continued navigating a narrow sideways range, save for a brief spike in immediate reaction to the cooler-than-expected CPI report for February (0.2%; Briefing.com consensus 0.3%), which showed a deceleration in the yr/yr CPI rate to 2.8% from 3.0%. The early selling has yields on the 5-yr note and longer tenors back near their highs from last week with the 5-yr yield returning to its 200-day moving average (4.094%). Equities are off to a higher start, but early action has seen some pressure. The S&P 500 remains up 0.5% while the Nasdaq (+1.3%) outperforms.
• Yield Check:
  • 2-yr: +3 bps to 3.97%
  • 3-yr: +4 bps to 3.98%
  • 5-yr: +2 bps to 4.07%
  • 10-yr: +2 bps to 4.31%
  • 30-yr: +2 bps to 4.62%