Bond Market Update

Oil Remains in Focus

• U.S. Treasuries have seen some pressure over the past couple hours, lifting yields on the 10-yr note and shorter tenors back to their opening levels from Tuesday while relative weakness in the long bond has its yield within two basis points of Monday's high. The recent selling comes alongside a renewed strength in the price of oil, which is now approaching $95/bbl, up more than $3/bbl on the day. This follows a report from Bloomberg that some Gulf and European officials believe that reaching a peace deal with Iran could take up to six months. Equities have dipped from their highs in recent action, but the S&P 500 (+0.2%) remains on track for a fresh record close.
• Yield Check:
  • 2-yr: +1 bp to 3.78%
  • 3-yr: +2 bps to 3.80%
  • 5-yr: +2 bps to 3.92%
  • 10-yr: +2 bps to 4.31%
  • 30-yr: +3 bps to 4.92%