Bond Market Update

Lows Revisited

• U.S. Treasuries are back on their session lows after a failed attempt to recover from their lower start. Treasuries showed a continuation of this week's resilience in morning trade, making a brief push into the green, but the slight gains faded quickly once crude oil accelerated today's advance, rising to $100/bbl. The rally in oil, which is now up $8/bbl for the week, accelerated due to supply concerns stemming from unconfirmed reports about a potential attack on a pipeline in Saudi Arabia. These reports followed overnight news about a Ukrainian attack on a refinery near Moscow. Even with the recent pressure, Treasuries remain on course to end the week with gains, though the 2-yr yield is now down just one basis point for the week while the 10-yr yield is down eleven basis points from last Friday's settlement.
• Yield Check:
  • 2-yr: +3 bps to 4.78%
  • 3-yr: +3 bps to 4.87%
  • 5-yr: +4 bps to 4.94%
  • 10-yr: +4 bps to 5.13%
  • 30-yr: +3 bps to 5.46%