Bond Market Update

Long End Bounces

• Recent action saw the long bond rally off its low into positive territory while shorter tenors remain in the red, but they too have seen steady buying over the past couple hours. That bid in Treasuries has encouraged a rally in the stock market with the S&P 500 now up 1.4%, extending this week's gain to 5.2%. The bounce in the long bond took place shortly after its yield stopped just shy of its January high (5.005%), and it has given the market some relief for the time being. That said, even with the recent bounce, the 30-yr yield is still up 44 basis points for the week while the 10-yr yield is up 47 basis points from last Friday's settlement.
• Yield Check:
  • 2-yr: +6 bps to 3.91%
  • 3-yr: +8 bps to 3.96%
  • 5-yr: +10 bps to 4.13%
  • 10-yr: +7 bps to 4.46%
  • 30-yr: -2 bps to 4.83%