Bond Market Update

Treasuries Steady Despite Tremors Elsewhere

• U.S. Treasuries have continued navigating a narrow sideways range near their starting levels after recovering from a post-PPI dip. The steady intraday showing makes for a stark contrast with action on Wall Street, where there has been some aggressive profit taking among chip-related names and listings with some correlation to prices of metals. However, the S&P 500 is only down 0.5%, masking some of the underlying weakness. Precious metals have given back their gains from this week with silver (-23.87, -20.9%, at $90.56) and gold (-418.0, -7.8%, at $4936.80/ozt) turning negative for the week. Barring a late spillover of today's volatility to Treasuries, the 10-yr yield is on track to increase by just a basis point for the week while yields on 2s, 3s, 5s, and 30s are currently flat for the week.
• Yield Check:
  • 2-yr: -1 bp to 3.54%
  • 3-yr: -1 bp to 3.61%
  • 5-yr: +1 bp to 3.81%
  • 10-yr: +3 bps to 4.25%
  • 30-yr: +3 bps to 4.88%