Bond Market Update

Stocks in Rally Mode

• Stocks are in rally mode again, with the S&P 500 pressing to its highest level since March and eying the 6,000 level.
• Like yesterday, the advance by the stock market has happened as Treasury yields have risen. They are little changed from yesterday's settlement, but yields on maturities across the curve have moved up appreciably from lows seen earlier.
• Seeing a nice move in the dollar today as well. The U.S. Dollar Index is up 0.5% to 99.20. The greenback is strong against the euro (EUR/USD -0.6% to 1.1379) following an inflation-friendly May CPI report for the eurozone that seemingly solidified the likelihood of another ECB rate cut at Thursday's policy meeting.
• Yield check:
  • 2-yr: +2 bps to 3.96%
  • 3-yr: -2 bps to 3.91%
  • 5-yr: +1 bp to 4.03%
  • 10-yr: unch at 4.46%
  • 30-yr: -2 bps to 4.98%