Bond Market Update

Data Recon

• U.S. Treasuries trade on their lows after widening their initial losses. Treasuries began slipping from their opening highs immediately after the start with additional selling coming after the just-released preliminary reading of the University of Michigan's Consumer Sentiment Index for June, which jumped to 60.5 from May's final reading of 52.2. In the same period a year ago, the index stood at 68.2.
  • The key takeaway from the report is that the June survey showed overall improvement in current sentiment and the expectations index, underscored by a sizable drop in year-ahead inflation expectations. Furthermore, there was an improvement in expected business conditions for the short and the long term.
• Yield Check:
  • 2-yr: +4 bps to 3.95%
  • 3-yr: +5 bps to 3.91%
  • 5-yr: +5 bps to 4.01%
  • 10-yr: +5 bps to 4.41%
  • 30-yr: +5 bps to 4.89%