Bond Market Update

Reversal Deepens

• U.S. Treasuries have continued pulling back from their post-NFP highs with the entire complex turning slightly negative in recent trade. The pullback in Treasuries, which is keeping the complex in the red for the week, has accompanied rebound action in equities, as the S&P 500 (+0.1%) fights to remain above its 200-day moving average (5733). In Fed news, Fed Chairman Powell said during a Q&A session that he was pleasantly surprised by improvements in productivity, which will result in higher potential output. He also repeated that there is no rush to adjust policy.
• Yield Check:
  • 2-yr: +1 bp to 3.98%
  • 3-yr: +1 bp to 3.99%
  • 5-yr: +1 bp to 4.07%
  • 10-yr: +1 bp to 4.30%
  • 30-yr: +2 bps to 4.60%