Bond Market Update

Fresh Lows Set

• U.S. Treasuries trade on their lows after a sideways start gave way to some recent selling. Treasuries spent the first three hours of action near their starting levels, showing little immediate reaction to today's big batch of economic data that included a renewed uptick in inflation expectations among consumers polled by the University of Michigan. The past hour has seen some additional pressure, which has sent the complex to fresh lows for the day. As a result, yields on the 5-yr note and longer tenors are rising to fresh highs for the week with the 30-yr yield rising back above its 50-day moving average (4.892%) to a two-week high. The 30-yr yield has increased by seven basis points this week while the 2-yr yield is unchanged from last Friday's settlement.
• Yield Check:
  • 2-yr: +2 bps to 3.76%
  • 3-yr: +2 bps to 3.72%
  • 5-yr: +3 bps to 3.85%
  • 10-yr: +4 bps to 4.33%
  • 30-yr: +4 bps to 4.93%