Bond Market Update

Rally Extended

• U.S. Treasuries have continued their advance with the 5-yr note leading the market to fresh highs in recent action. Thanks to the steady bid, the 5-yr yield is now back below its 200-day moving average (4.069%), tracking its lowest settlement in nearly three weeks. With today's strong rally, which has been aided by a reduced Q1 GDP forecast from the Atlanta Fed (to -2.8% from -1.8%), the 5-yr note and shorter tenors are now on track to end the week in positive territory while 10s and 30s remain modestly lower for the week.
• Yield Check:
  • 2-yr: -9 bps to 3.91%
  • 3-yr: -11 bps to 3.89%
  • 5-yr: -12 bps to 3.98%
  • 10-yr: -11 bps to 4.26%
  • 30-yr: -10 bps to 4.63%