Bond Market Update

Rally Extended

• U.S. Treasuries have extended today's advance amid persistent weakness in equities, which has spilled over from the technology sector to the broader market. As result, the S&P 500 (-0.9%; -0.4% YTD) and Nasdaq (-1.0%; -2.5% YTD) are now down for the year. As for Treasuries, the short end has remained ahead, but longer tenors have climbed since our last update, narrowing their underperformance gap. Today's bid has sent yields on 5s and 10s back below their respective 200-day moving averages while the 2-yr yield has fallen past its 50-day moving average (3.530%) toward its lowest settlement since early January.
• Yield Check:
  • 2-yr: -7 bps to 3.49%
  • 3-yr: -8 bps to 3.56%
  • 5-yr: -7 bps to 3.76%
  • 10-yr: -6 bps to 4.21%
  • 30-yr: -6 bps to 4.86%