Bond Market Update

Losses Maintained

• Recent action saw the long bond return to its low that was marked in immediate reaction to the report that the White House is willing to offer a 90-day pause on implementing tariffs on imports from countries other than China. Shorter tenors have also faced some recent selling, but they remain above their morning lows. The early reversal lifted the 10-yr yield to within a basis point of its 200-day moving average (4.219%) while the 2-yr yield is revisiting its closing level from Thursday. Equities have shown continued volatility with the S&P 500 down 1.6% after giving back a brief gain.
• Yield Check:
  • 2-yr: +4 bps to 3.71%
  • 3-yr: +7 bps to 3.71%
  • 5-yr: +11 bps to 3.82%
  • 10-yr: +16 bps to 4.14%
  • 30-yr: +20 bps to 4.59%