Bond Market Update

Losses Maintained

• U.S. Treasuries have inched up off their mid-morning lows, but they continue trading in the red with longer tenors maintaining today's underperformance. Seeing higher yields across the curve is not exactly what participants had hoped for when the FOMC announced its 25-basis point rate cut yesterday, but the hawkish undertone in the FOMC Statement, coupled with a conservative outlook regarding future hikes have exerted pressure on Treasuries after they climbed to their best levels of the month leading into yesterday's policy Statement. The market will not receive any more data this week and participants will have to wait until next Friday to see the next bit of inflation-related data in the Personal Income/Outlays report for August.
• Yield Check:
  • 2-yr: +2 bps to 3.57%
  • 3-yr: +2 bps to 3.55%
  • 5-yr: +1 bp to 3.66%
  • 10-yr: +3 bps to 4.10%
  • 30-yr: +4 bps to 4.72%