Bond Market Update

Early Losses Extended

• U.S. Treasuries trade on their lows after tacking onto their initial losses. The trading day started in the red, followed by some more selling after the cash open. The market did not receive any economic data since the cash start, but the selling has taken place alongside a rise in equities, which has the S&P 500 trading up 3.8% while the Nasdaq (+4.3%) outperforms. The early weakness in Treasuries has lifted the 10-yr yield back above its 200-day moving average (4.219%) to its highest level in more than a week.
• Yield Check:
  • 2-yr: +11 bps to 3.84%
  • 3-yr: +11 bps to 3.85%
  • 5-yr: +12 bps to 3.96%
  • 10-yr: +10 bps to 4.25%
  • 30-yr: +8 bps to 4.67%