Bond Market Update

Finding Support

• It hasn't been a full recovery for longer-dated maturities, but it feels like one. The 10-yr note yield climbed above 4.50%, and the 30-yr bond yield climbed above 5.00%, but both of those moves triggered quick support.
• The dollar came under pressure after the Moody's downgrade of the U.S. credit rating, but it has also fought back from worse levels. The U.S. Dollar Index had been down 1.0%, but it is now down 0.6% at 100.47.
• The economic calendar today was limited to the Leading Economic Index for April, which wasn't good at all. The LEI declined 1.0%. The economic calendar on Tuesday is devoid of any U.S. data of note.
• Yield check:
  • 2-yr: unch at 3.98%
  • 3-yr: unch at 3.96%
  • 5-yr: +2 bps to 4.08%
  • 10-yr: +4 bps to 4.48%
  • 30-yr: +5 bps to 4.95%