Bond Market Update

Longer Tenors Edging Higher

• Recent action saw some buying in longer tenors, putting yields on 10s and 30s within a couple basis points of yesterday's closing levels. Meanwhile, the short end has remained much closer to morning lows after the preliminary Consumer Sentiment Survey from the University of Michigan showed an acceleration in one-year (to 4.9% from 4.3%) and five-year (to 3.9% from 3.5%) inflation expectations. Barring some late volatility, Treasuries are on course for a slightly higher finish to the week with the 10-yr yield currently down two basis points from last Friday's settlement while the 2-yr yield is flat for the week.
• Yield Check:
  • 2-yr: +5 bps to 4.00%
  • 3-yr: +5 bps to 3.99%
  • 5-yr: +4 bps to 4.07%
  • 10-yr: +2 bps to 4.30%
  • 30-yr: +1 bp to 4.61%