Bond Market Update

Unable to Bounce

• U.S. Treasuries have dipped back to their opening levels after a brief slide to fresh lows in 10s and 30s. Meanwhile, shorter tenors are currently on the verge of hitting fresh lows for the day. Today's action has unfolded in relatively quiet fashion with the market failing to capitalize on its early bounce attempt. The intraday news flow has also been on the light side, but it is worth noting that President Trump said that he had a good call with China's President Xi and that he plans to meet with the Chinese leader at next year's APEC Summit in South Korea, followed by a visit to China. Barring a volatile finish, the 2-yr yield is on course to increase by two basis points for the week while the 10-yr yield is up eight basis points from last Friday's settlement.
• Yield Check:
  • 2-yr: +1 bp to 3.58%
  • 3-yr: +1 bp to 3.56%
  • 5-yr: +2 bps to 3.69%
  • 10-yr: +3 bps to 4.14%
  • 30-yr: +3 bps to 4.75%