Bond Market Update

Long End Remains Behind

• U.S. Treasuries continue trading near their opening levels after a weak start in longer tenors. Longer tenors underperformed from the start, though the complex has been able to stay above its early low. Treasuries notched lows about 15 minutes after the start, bouncing back to their starting levels in short order. The lack of follow-through selling is encouraging, though it is still early in the day. The market did not receive any economic data today but tomorrow will bring a decent batch of data and a $13 bln 20-yr Treasury bond reopening. Equities are off to a weak start with the S&P 500 (-1.4%) returning to unchanged for the month.
• Yield Check:
  • 2-yr: -1 bp to 3.59%
  • 3-yr: UNCH at 3.67%
  • 5-yr: +2 bps to 3.85%
  • 10-yr: +5 bps to 4.28%
  • 30-yr: +8 bps to 4.92%