Bond Market Update

Pressure Persists

• U.S. Treasuries trade on their lows after facing steady pressure since today's cash start. The 10-yr yield dipped past yesterday's low (4.344%) at the open, but it is now ten basis points above that mark, returning to levels seen on Wednesday. The selling comes amid concerns about the inflationary impact of a higher price of oil, though even with today's weakness, the benchmark yield is still down seven basis points for the week while the 2-yr yield is down six basis points from last Friday's settlement. Equities have spent the day in a steady rise off opening lows, helping the S&P 500 trim its loss to 0.4%.
• Yield Check:
  • 2-yr: +7 bps to 3.98%
  • 3-yr: +8 bps to 3.94%
  • 5-yr: +8 bps to 4.04%
  • 10-yr: +8 bps to 4.44%
  • 30-yr: +8 bps to 4.92%