Bond Market Update

Fresh Highs Set

• Recent action saw the 10-yr note and shorter tenors inch to fresh highs for the session while the long bond has also seen some buying, but it remains below its high that was notched during today's opening hour. Thanks to today's buying, the 10-yr yield has dipped to its lowest level since early May while the 5-yr yield has reached a level not seen since early April. The market remains all but certain that a rate cut will be announced on September 17 with the CME FedWatch tool showing a 97.6% implied likelihood of a cut in just under two weeks.
• Yield Check:
  • 2-yr: -2 bps to 3.59%
  • 3-yr: -3 bps to 3.55%
  • 5-yr: -3 bps to 3.65%
  • 10-yr: -3 bps to 4.18%
  • 30-yr: -2 bps to 4.87%