Bond Market Update

Short End Joins Retreat

• U.S. Treasuries have dipped from their starting levels, sending shorter tenors into negative territory after their flat open. Longer tenors underperformed out of the gate, and they remain a bit behind, but the long bond has done a better job resisting the recent pressure than the short end. The early selling has lifted the 10-yr yield above its 200-day moving average (4.234%) back to its session high from Friday. Equities are off to a modestly higher start with the S&P 500 (+0.2%) trailing the Nasdaq (+0.5%) while the Dow (-0.1%) lags once again.
• Yield Check:
  • 2-yr: +1 bp to 3.58%
  • 3-yr: +2 bps to 3.66%
  • 5-yr: +3 bps to 3.84%
  • 10-yr: +3 bps to 4.25%
  • 30-yr: +3 bps to 4.87%