Bond Market Update

Losses Widened

• U.S. Treasuries of most tenors have faced some more pressure since our last update while the long bond has remained resilient, trading a bit above its starting level. The outperformance in the 30-yr bond makes for a continuation of this week's show of relative strength, leaving it on course for a flat finish to the week while 10s and shorter tenors are on track to record losses for the week. With today's selling, the 2-yr yield is now just four basis points below its December high while the 5-yr yield has climbed above its 200-day moving average (3.809%) in search of its highest settlement since late August.
• Yield Check:
  • 2-yr: +3 bps to 3.59%
  • 3-yr: +3 bps to 3.65%
  • 5-yr: +5 bps to 3.81%
  • 10-yr: +5 bps to 4.21%
  • 30-yr: +3 bps to 4.82%