Bond Market Update

Short End Leads Rally

• U.S. Treasuries have risen off their early lows, though 10s and 30s remain in the red while shorter tenors have added to their gains after starting ahead. The Treasury complex spent the first couple hours in a steady rise, with the move accelerating after equities opened on a weak note with the S&P 500 falling 2.1%. Economic data released this morning was limited to the Leading Indicators report for March (-0.7%; Briefing.com consensus -0.4%; prior -0.2%), which missed expectations. There has also been some focus on weekend comments from White House Economic Adviser Hassett, who said that President Trump is studying ways of removing Fed Chairman Powell from his post.
• Yield Check:
  • 2-yr: -7 bps to 3.73%
  • 3-yr: -6 bps to 3.74%
  • 5-yr: -3 bps to 3.91%
  • 10-yr: +1 bp to 4.35%
  • 30-yr: +5 bps to 4.86%