Bond Market Update

Opening Advance Reversed

• U.S. Treasuries have retreated from their early highs with the long end leading the reversal after the market received the advance reading of Q1 GDP (-0.3%; Briefing.com consensus 0.4%), which showed a contraction that was owed entirely to a surge in imports ahead of tariffs and an acceleration in the Core PCE Price Index to 3.5% from 2.6% in Q4. The post-data selling lifted the 10-yr yield back to its 200-day moving average (4.221%), where the market found some support.
• Yield Check:
  • 2-yr: UNCH at 3.66%
  • 3-yr: +1 bp to 3.66%
  • 5-yr: +1 bp to 3.79%
  • 10-yr: +2 bps to 4.20%
  • 30-yr: +3 bps to 4.67%