Bond Market Update

Bounce Extended

• U.S. Treasuries trade on their highs after spending the first couple hours of action in a steady rise. The 10-yr note and the long bond started the day in negative territory, adding to yesterday's losses, but they bounced in short order, turning positive during the past hour. Meanwhile, the 2-yr note outperforms, trading at its session high. The market did not receive any data today, but participants remain on alert for potential market-moving comments from President Trump ahead of this weekend's meeting in Switzerland between trade delegations from the U.S. and China. Equities are off to a modestly higher start with the S&P 500 (+0.2%) returning to little changed for the week (-0.2%).
• Yield Check:
  • 2-yr: -5 bps to 3.84%
  • 3-yr: -6 bps to 3.82%
  • 5-yr: -5 bps to 3.95%
  • 10-yr: -2 bps to 4.35%
  • 30-yr: -1 bp to 4.83%