Bond Market Update

Gains Defended

• U.S. Treasuries hover just below their morning highs, having spent the past couple hours of trade in a slim sideways range. Treasuries climbed to highs during the first 90 minutes of today's session and they have largely defended their gains since then. The 2-yr note has seen a bit more backtracking than longer tenors, though its yield is still within a basis point of today's early low. This makes for a quiet start to the week that is expected to feature a 25-basis point rate cut on Wednesday and likely hints from Fed Chairman Powell that more easing will take place before the end of the year.
• Yield Check:
  • 2-yr: -3 bps to 3.53%
  • 3-yr: -3 bps to 3.50%
  • 5-yr: -2 bps to 3.60%
  • 10-yr: -3 bps to 4.03%
  • 30-yr: -3 bps to 4.65%