Bond Market Update

Early Gains Moderated

• U.S. Treasuries trade on their lows after a morning pullback from their starting levels. The trading day started with relative strength in longer tenors, which briefly pressured the 30-yr yield to its lowest level in two weeks. However, the higher start was followed by an immediate pullback that eventually pressured 5s and shorter tenors into the red while longer tenors gave back a good chunk of their initial gains. True to recent form, the intraday pressure coincided with a rebound in the price of oil, which is now up $0.67, or 0.7%, for the day, trading at $94.41/bbl. Elsewhere, equities trade modestly lower after trimming their starting losses with the S&P 500 down just 0.1% while the Dow (-0.3%) underperforms after starting the day ahead of the S&P 500.
• Yield Check:
  • 2-yr: +2 bps to 4.81%
  • 3-yr: +1 bp to 4.94%
  • 5-yr: UNCH at 5.02%
  • 10-yr: -1 bp to 5.23%
  • 30-yr: -2 bps to 5.58%