Bond Market Update

Early Volatility Subsides

• U.S. Treasuries continue trading in mixed fashion after nestling into a narrow sideways range during the past couple hours. The market saw some early volatility in reaction to the release of the advance reading of Q1 GDP (-0.3%; Briefing.com consensus 0.4%), but the pace of the action slowed considerably as the morning went on. This leaves 10s and 30s with modest losses while the 2-yr note trades higher with its yield set to end the month at its lowest level since early October. Equities are continuing their rebound off morning lows but the S&P 500 remains down 1.1%, on track to surrender 2.0% for the month.
• Yield Check:
  • 2-yr: -3 bps to 3.63%
  • 3-yr: -3 bps to 3.62%
  • 5-yr: -2 bps to 3.76%
  • 10-yr: +1 bp to 4.18%
  • 30-yr: +3 bps to 4.68%