Bond Market Update

Early Gains Reversed

• U.S. Treasuries have backpedaled from their opening range with the 10-yr note and shorter tenors reaching fresh lows, though the entire complex is now in negative territory. Treasuries essentially held their ground through the first two hours of action, which featured the release of a cooler-than-expected CPI report for April (0.2%; Briefing.com consensus 0.3%), while more recent trade saw some pressure alongside an extension of gains in equities. The S&P 500 has extended today's gain to 0.9% and it is now back in positive territory for the year (+0.2%) while the Nasdaq (+1.7%) outperforms today but is still down 1.5% since the end of 2024.
• Yield Check:
  • 2-yr: +2 bps to 4.02%
  • 3-yr: +2 bps to 4.01%
  • 5-yr: +2 bps to 4.12%
  • 10-yr: +4 bps to 4.49%
  • 30-yr: +5 bps to 4.94%