Bond Market Update

News Reports

• Yields have perked up a bit, sitting near their highs for the cash session.
• CNBC reports that an EU spokesperson said reports suggesting that the EU accepts a U.S. tariff of 10% do not reflect the current state of discussions.
• Other notable reports today suggest:
  • Iran is working diplomatic channels with an intention of trying to negotiate a ceasefire agreement soon with Israel
  • Punchbowl News reporter Jake Sherman says Senate will put a $10K SALT cap in their version of large reconciliation bill; they see this as a negotiating mark (SALT cap in House version of the bill is $40K)
  • President Trump expressed optimism around a trade deal with Canada after meeting with Prime Minister Mark Carney, according to Politico
  • Senate version of large reconciliation bill will lower Medicaid provider tax to 3.5%; draft of bill expected tonight, according to Politico
  • President Trump will not sign G-7 statement calling for de-escalation between Israel and Iran, although there is some hope that he can be persuaded, according to CNN
• Yield check:
  • 2-yr: +1 bp to 3.97%
  • 3-yr: +1 bp to 3.93%
  • 5-yr: +1 bp to 4.03%
  • 10-yr: +3 bps to 4.45%
  • 30-yr: +3 bps to 4.95%