Bond Market Update

Post-CPI Gains Maintained

• U.S. Treasuries are essentially back where they were during our last update after a brief push to fresh highs. The bulk of today's action followed the release of the January CPI report while the past few hours have seen a narrowing of the trading range. Today's advance has yields falling to fresh lows for the year with the 2-yr yield on the verge of settling at its lowest level since September 2022 while yields on 10s and 30s are back to levels seen at the start of December. Equities have overcome a shaky start with the S&P 500 (+0.5%) trimming this week's loss to 1.0%.
• Yield Check:
  • 2-yr: -5 bps to 3.42%
  • 3-yr: -5 bps to 3.46%
  • 5-yr: -5 bps to 3.62%
  • 10-yr: -4 bps to 4.06%
  • 30-yr: -3 bps to 4.70%