Bond Market Update

Pullback Deepens

• U.S. Treasuries have added to their losses, lifting yields back to levels seen yesterday morning. The recent extension of the losses has taken place alongside some profit taking in the S&P 500 (+0.2%) after the benchmark index approached its record high from late January. Investors received some lower-tier economic data today, but the market impact was limited. Import and export prices increased notably in March while the April Empire State Manufacturing survey (11.0; prior -0.2) showed renewed growth. Tomorrow, the market will receive March Industrial Production (Briefing.com consensus 0.1%; prior 0.2%), the April Philadelphia Fed survey (Briefing.com consensus 12.7; prior 18.1), and weekly Initial Claims (Briefing.com consensus 215,000; prior 219,000).
• Yield Check:
  • 2-yr: +2 bps to 3.77%
  • 3-yr: +3 bps to 3.79%
  • 5-yr: +3 bps to 3.90%
  • 10-yr: +3 bps to 4.28%
  • 30-yr: +3 bps to 4.89%