Bond Market Update

Narrow Range Maintained

• Longer-dated Treasuries trade on their lows while shorter tenors outperform with the 2-yr note holding a slim gain. The market has seen an intraday shift in dynamic, as longer tenors started in the lead, but they have failed to sustain their higher start. However, today's overall action has unfolded inside a narrow range, so this divergence has not been too pronounced. The market is headed for a quiet finish to a week that started with a Tuesday plunge in longer tenors. The 30-yr yield is now up just one basis point for the week thanks to a resilient showing on Wednesday and Thursday. Meanwhile, the 2-yr yield is flat for the week.
• Yield Check:
  • 2-yr: -1 bp to 3.60%
  • 3-yr: UNCH at 3.68%
  • 5-yr: UNCH at 3.85%
  • 10-yr: UNCH at 4.25%
  • 30-yr: UNCH at 4.85%