Bond Market Update

Defending Gains

• U.S. Treasuries hover just below their highs that were reached in immediate reaction to the cool CPI report for May (0.1%; Briefing.com consensus 0.2%). The belly remains ahead, making for a sharp turn from its early underperformance. The early advance in Treasuries has sent the 5-yr yield back below its 200-day moving average (4.049%) while the 2-yr yield is being kept below the 200-day moving average of its own (4.039%) after an early rise just above that level. Equities are off to a higher start with the S&P 500 (+0.3%) extending this week's gain to 1.0%.
• Yield Check:
  • 2-yr: -5 bps to 3.96%
  • 3-yr: -6 bps to 3.93%
  • 5-yr: -5 bps to 4.04%
  • 10-yr: -3 bps to 4.44%
  • 30-yr: -1 bp to 4.93%