Bond Market Update

Rebound Extended

• U.S. Treasuries have continued their rebound rally with issues in the belly maintaining their lead. The market has spent the session in a steady rise that accelerated after today's morning batch of economic data, which included a cool PPI report for April (-0.5%; Briefing.com consensus 0.3%). The rally, which follows three days of losses, has returned the 10-yr yield to its lows from Monday and Tuesday (4.429%) while the 2-yr yield is back to the midpoint of its range from Monday. Equities have overcome their opening weakness with the S&P 500 (+0.4%) outpacing the Nasdaq (+0.2%).
• Yield Check:
  • 2-yr: -8 bps to 3.97%
  • 3-yr: -9 bps to 3.96%
  • 5-yr: -10 bps to 4.06%
  • 10-yr: -9 bps to 4.44%
  • 30-yr: -6 bps to 4.91%