Bond Market Update

Losses Widened

• U.S. Treasuries trade on fresh lows, lifting yields on most tenors toward their highs from March. Treasuries followed their lower start with a small bounce in immediate reaction to the April CPI report, which was right in line with expectations, showing a headline increase of 0.6% while Core CPI was up 0.4%. Despite the brief post-data uptick, Treasuries found renewed pressure after a few minutes, reaching lows in recent trade. Equities have stumbled out of the gate with the S&P 500 (-0.4%) trimming its May gain to 2.4% while WTI crude remains above $101/bbl, presenting a general headwind to stocks and bonds.
• Yield Check:
  • 2-yr: +4 bps to 3.99%
  • 3-yr: +5 bps to 4.02%
  • 5-yr: +5 bps to 4.12%
  • 10-yr: +5 bps to 4.46%
  • 30-yr: +4 bps to 5.02%