Bond Market Update

Longer Tenors Maintain Early Lead

• U.S. Treasuries have dipped from their opening highs after sideways action during the first two hours of trade. Longer tenors started the day in the lead, and they remain ahead while the 2-yr note has dipped into the red, giving back its slim early gain. The market did not receive any economic data since the cash start in Treasuries, so the range-bound start should not be surprising. Equities also trade modestly higher, defending their starting gains with the S&P 500 (+0.2%) trading a couple steps behind the Nasdaq (+0.4%).
• Yield Check:
  • 2-yr: +1 bp to 4.01%
  • 3-yr: UNCH at 3.98%
  • 5-yr: -1 bp to 4.08%
  • 10-yr: -2 bps to 4.47%
  • 30-yr: -2 bps to 4.93%