Bond Market Update

Continued Support

• There was an early run at driving the 10-yr note yield above 4.50% and the 30-yr bond yield above 5.00%, but once again, those efforts got stymied by renewed buying interest.
• Longer-dated maturities are a little weaker in today's session that has included some curve steepening. This has occurred with stocks modestly weaker and press reports suggesting the GOP push to get the reconciliation bill passed in the House is running into some interference from the SALT Caucus, which wants a higher deduction limit, and the Freedom Caucus, which wants more extensive cuts to Medicaid than the president wants to see.
• There was no U.S. economic data of note today.
• The dollar is weaker, with strength in the euro largely accounting for the 0.3% decline in the U.S. Dollar Index to 100.11.
• Yield check:
  • 2-yr: -2 bps to 3.96%
  • 3-yr: -2 bps to 3.94%
  • 5-yr: -1 bp to 4.07%
  • 10-yr: +1 bp to 4.48%
  • 30-yr: +3 bps to 4.97%