Bond Market Update

Still Bid

• Treasuries continue to garner a bid that has them sitting at, or near, their best levels of the session.
• Lots of talk about trade matters today, including a report from Bloomberg that the EU is proposing a 10% tariff pact with the U.S. and an ask of the U.S. to lower tariff rates for key products that include semiconductors, pharmaceuticals, and commercial aircraft.
• It is unclear if the U.S. is going to concede to this proposal, but there is speculation that if the EU and U.S. don't reach a deal by July 9, there will be a foundation to agree to an extension.
• The dollar continues to lose ground on the final day of a tough quarter for the greenback. Including today's 0.5% decline to 96.88, the U.S. Dollar Index is down 7.0% in the second quarter.
• Yield check:
  • 2-yr: -2 bps to 3.72%
  • 3-yr: -3 bps to 3.69%
  • 5-yr: -3 bps to 3.80%
  • 10-yr: -6 bps to 4.23%
  • 30-yr: -7 bps to 4.78%