Bond Market Update

Higher Start Reversed

• U.S. Treasuries trade on their lows after retreating from their starting levels. The 10-yr note and shorter tenors opened the day in positive territory, but they quickly found selling pressure, joining the long bond in negative territory. With the early retreat, the 10-yr yield is now up nearly 20 basis points off its low from Friday after falling 50 basis points since March 28. While today's pullback could be technical, continued selling will invite renewed concerns about potential stagflation in the economy. Equities are off to a lower start, though they are climbing off their worst levels with the S&P 500 currently down 2.0%.
• Yield Check:
  • 2-yr: -1 bp to 3.66%
  • 3-yr: -1 bp to 3.64%
  • 5-yr: +3 bps to 3.74%
  • 10-yr: +8 bps to 4.06%
  • 30-yr: +14 bps to 4.52%