Bond Market Update

Early Rally Reversed

• U.S. Treasuries have continued their reversal off morning highs in steady fashion even though equities are failing to hold their early gains. The opening advance pressured the 10-yr yield to 4.17%, its lowest level since early March, but the steady backtracking has lifted the benchmark yield back above its 200-day moving average (4.225%) to little changed for the day. Other tenors are also back near their closing levels from yesterday after giving back their morning gains.
• Yield Check:
  • 2-yr: -1 bp to 3.97%
  • 3-yr: -1 bp to 3.95%
  • 5-yr: -1 bp to 4.02%
  • 10-yr: -1 bp to 4.25%
  • 30-yr: -1 bp to 4.56%