Bond Market Update

Higher Start Reversed

• U.S. Treasuries trade on their lows after a steady slide from their opening highs. Treasuries started the day with modest gains, but selling pressure began building immediately after the open, keeping the market on the defensive into the early afternoon. Shorter tenors showed some relative strength at the start, but that strength has faded, causing the 2-yr yield to reverse the bulk of its retreat from the past two days. The intraday pressure has coincided with a rise in the price of oil, which is back to $102/bbl after an overnight dip toward $99/bbl. Meanwhile, equities are fighting to sustain today's upbeat start which has lifted the S&P 500 (+0.6%) back to its 50-day moving average (7705).
• Yield Check:
  • 2-yr: +4 bps to 4.78%
  • 3-yr: +4 bps to 4.83%
  • 5-yr: +5 bps to 4.95%
  • 10-yr: +5 bps to 5.15%
  • 30-yr: +4 bps to 5.48%