Bond Market Update

Short End Maintains Early Lead

• U.S. Treasuries have continued their subdued start to the Monday session with the 10-yr note and shorter tenors inching to fresh highs while the long bond has risen off its early low, but its yield remains slightly higher at this time. The market is starting the week on a quiet note with no notable impact from the just-released Wholesale Inventories report for April (0.2%; Briefing.com consensus 0.0%; prior 0.4%), but the rest of the week will bring some noteworthy reports like May CPI (Briefing.com consensus 0.2%; prior 0.2%) and Core CPI (Briefing.com consensus 0.3%; prior 0.2%) on Wednesday, followed by May PPI (Briefing.com consensus 0.2%: prior -0.5%) and Core PPI (Briefing.com consensus 0.3%; prior -0.4%) on Thursday. Equities are off to a mostly higher start with the S&P 500 (+0.1%) trailing the Nasdaq (+0.2%) while the Dow (-0.2%) underperforms.
• Yield Check:
  • 2-yr: -3 bps to 4.01%
  • 3-yr: -3 bps to 4.00%
  • 5-yr: -3 bps to 4.10%
  • 10-yr: -1 bp to 4.50%
  • 30-yr: +1 bp to 4.97%