Bond Market Update

Early Gains Padded

• U.S. Treasuries trade on their highs after adding to their starting gains. Treasuries followed their higher open with a quick extension of their gains and a recent push to a fresh high in the 5-yr note. President Trump took to social media this morning, warning to impose additional tariffs on countries that attempt to reconsider trade agreements with the U.S. after it was reported this morning that the EU is putting the brakes on approving the trade deal with the U.S. Equities are off to a lower start with the S&P 500 (-0.7%) pressured by financials (-2.3%) amid ongoing weakness in asset managers, stemming from worries about weakness in private credit in the tech sector.
• Yield Check:
  • 2-yr: -1 bp to 3.47%
  • 3-yr: -2 bps to 3.48%
  • 5-yr: -3 bps to 3.62%
  • 10-yr: -3 bps to 4.06%
  • 30-yr: -2 bps to 4.71%