Bond Market Update

Pullback Deepens

• U.S. Treasuries have continued their backtracking off opening highs with the 10-yr note turning negative during the past hour while the 2-yr note continues hanging onto a dwindling gain. Still, even with the backtracking, the entire complex remains on course for a higher finish to the week with the 10-yr yield down six basis points and the 2-yr yield down eight basis points from last Friday's settlement. The pullback in Treasuries is taking place alongside a rebound in equities, which has the S&P 500 now down just 0.2% for the day and up 0.2% for the week.
• Yield Check:
  • 2-yr: -2 bps to 3.94%
  • 3-yr: -1 bp to 3.92%
  • 5-yr: UNCH at 4.00%
  • 10-yr: +2 bps to 4.25%
  • 30-yr: +4 bps to 4.59%