Bond Market Update

Sideways Drift Continues

• U.S. Treasuries continue hovering near their starting levels, making for a quiet finish to the month, which saw a tight inverse correlation between Treasury prices and the price of oil. Today's session has seen essentially no intraday movement despite a big morning dose of economic data, headlined by a slightly weaker-than-expected advance Q1 GDP (2.0%; Briefing.com consensus 2.1%). Today's sideways drift comes after yields increased by about ten basis points across the curve earlier this month. Crude oil, meanwhile, has added about $3.50/bbl this month, after swinging between $80/bbl and $118/bbl over the past four weeks.
• Yield Check:
  • 2-yr: -4 bps to 3.89%
  • 3-yr: -4 bps to 3.91%
  • 5-yr: -3 bps to 4.03%
  • 10-yr: -2 bps to 4.40%
  • 30-yr: UNCH at 4.98%