Bond Market Update

Holding Onto Gains

• U.S. Treasuries hover just below highs that were reached about two hours ago. The overall pace of the action has slowed significantly since then, with Treasuries ranging just below their best levels of the day. Longer tenors trade a bit ahead, though the divergence is not that big. The market will receive the July PPI report tomorrow, but a September rate cut seems to be almost a lock at this point with the fed funds futures market showing a 99.9% likelihood of the long-awaited rate cut. Equities have backed down from their early highs, returning the S&P 500 to little changed after the index hit another fresh record at the outset of today's session.
• Yield Check:
  • 2-yr: -5 bps to 3.68%
  • 3-yr: -6 bps to 3.65%
  • 5-yr: -6 bps to 3.77%
  • 10-yr: -6 bps to 4.24%
  • 30-yr: -6 bps to 4.82%