Bond Market Update

Short End Turns Lower

• U.S. Treasuries are mixed in midday action with 10s and 30s hanging onto modest gains while shorter tenors have dipped into negative territory. Treasuries spent the first couple hours of action defending their opening gains with help from a reversal in the price of oil, but selling pressure returned to the Treasury market as soon as oil marked a session low near $101/bbl at 10:30 ET. The past couple of hours have seen steady selling in Treasuries even though the bounce in the price of oil has been shallow so far. Equities, meanwhile, are defending their gains with the Russell 2000 (+1.6%) showing relative strength while the S&P 500 (+0.4%) holds a slimmer gain. The Nasdaq (+0.2%) underperforms amid a continuation of skittish sentiment surrounding data center infrastructure names.
• Yield Check:
  • 2-yr: +3 bps to 4.79%
  • 3-yr: +2 bps to 4.87%
  • 5-yr: +1 bp to 4.94%
  • 10-yr: -1 bp to 5.13%
  • 30-yr: -3 bps to 5.44%