Bond Market Update

Short End Shows Strength

• U.S. Treasuries continue holding onto their gains, though the long bond has seen some backtracking from its morning high while shorter tenors and the belly trade much closer to their best levels of the day. Today's session was free of top-tier economic data, but the New York Fed released its Survey of Consumer Expectations for March, which showed that year-ahead inflation expectations increased by 50 basis points to 3.6% while expectations at the three-year horizon remained at 3.0% while five-year expectations dipped to 2.9% from 3.0%. Equities have given back a sizable chunk of their gains with the S&P 500 now up just 0.4%.
• Yield Check:
  • 2-yr: -9 bps to 3.86%
  • 3-yr: -11 bps to 3.89%
  • 5-yr: -12 bps to 4.04%
  • 10-yr: -8 bps to 4.41%
  • 30-yr: -4 bps to 4.84%