Bond Market Update

 Boosted by Peace Hopes

• U.S. Treasuries trade firmly higher after rallying off their opening levels. The trading day started with modest gains, but the entire complex rallied during the initial hour, responding to comments from Iran's foreign minister, who said that the Strait of Hormuz is open after the ceasefire agreement between Israel and Lebanon. The rally in Treasuries puts yields on the 10-yr note and shorter tenors for their lowest settlement since mid-March while crude oil has plunged below $90/bbl, pausing near its 50-day moving average (84.43). Equities are off to a strong start with the S&P 500 (+1.0%) extending this week's gain to 4.3%.
• Yield Check:
  • 2-yr: -8 bps to 3.70%
  • 3-yr: -8 bps to 3.72%
  • 5-yr: -8 bps to 3.83%
  • 10-yr: -7 bps to 4.24%
  • 30-yr: -5 bps to 4.88%