Bond Market Update

Long End Behind

• U.S. Treasuries trade on their lows after seeing some post-CPI volatility, even though the report was in line with expectations, leaving the yr/yr CPI growth rate at 2.7% while core CPI accelerated to 3.1% from 2.9% in June. Treasuries rallied to session highs in immediate reaction to the report before reversing to fresh lows nearly as fast. The long bond has been at the forefront of the selling while 5s and shorter tenors remain a bit above their lowest levels of the morning. Equities are off to a higher start with the S&P 500 (+0.4%) outpacing the Nasdaq (+0.2%).
• Yield Check:
  • 2-yr: -1 bp to 3.74%
  • 3-yr: UNCH at 3.72%
  • 5-yr: +1 bp to 3.84%
  • 10-yr: +3 bps to 4.30%
  • 30-yr: +5 bps to 4.89%