Bond Market Update

Backing Up

• Treasury yields are near their highs for the session, with shorter-dated securities underperforming.
• Market participants are mulling the notion that Fed Chair Powell suggested in a panel discussion at an ECB Forum that the Fed might have cut rates already if it weren't for the tariffs. 
• Separately, the Senate's version of the "One Big, Beautiful Bill" passed in a full vote, but barely so. It took a tiebreaking vote from VP Vance to get it done. The three GOP senators who did not vote for the bill were Senator Tillis (NC), Senator Paul (KY), and Senator Collins (ME). The bill now goes back to the House for consideration. It is President Trump's desire to have it on his desk for signing by July 4.
• Yield check:
  • 2-yr: +6 bps to 3.78%
  • 3-yr: +7 bps to 3.75%
  • 5-yr: +6 bps to 3.85%
  • 10-yr: +3 bps to 4.26%
  • 30-yr: +1 bp to 4.79%