Bond Market Update

Opening Range Maintained

• U.S. Treasuries continue trading near their starting levels even though the April PPI report showed much hotter than expected headline CPI (1.4%; Briefing.com consensus 0.4%) and core CPI (1.0%; Briefing.com consensus 0.3%) growth. Today's sideways action comes after two days of heavy selling that increased the 10-yr yield by ten basis points, so today's report essentially got priced in already. Equities hold slim early losses after equity futures slid from their morning highs while crude oil is rising past $103/bbl, which deserves attention because it could present an additional headwind if the rally continues.
• Yield Check:
  • 2-yr: -1 bp to 3.99%
  • 3-yr: UNCH at 4.03%
  • 5-yr: UNCH at 4.13%
  • 10-yr: +1 bp to 4.48%
  • 30-yr: +1 bp to 5.04%