Bond Market Update

Opening Bounce Extended

• U.S. Treasuries have continued their rebound off morning lows, turning a subdued start into a solid rally to begin a week that will feature a full slate of noteworthy economic data. The advance reading of Q1 GDP (Briefing.com consensus 0.4%) will be released on Wednesday morning with the market eager to see if the U.S. economy was able to avoid a contractionary start to 2025. Shorter tenors are at the forefront of today's advance with the 2-yr yield now just two basis points above its lowest close from early April (3.671%) while the 10-yr yield has fallen back below its 200-day moving average (4.222%), but it is still up more than 20 basis points above its April closing low (3.985%).
• Yield Check:
  • 2-yr: -7 bps to 3.69%
  • 3-yr: -7 bps to 3.69%
  • 5-yr: -6 bps to 3.83%
  • 10-yr: -5 bps to 4.22%
  • 30-yr: -4 bps to 4.70%