Bond Market Update

Early Gains Padded

• U.S. Treasuries trade on their highs after adding to their starting gains in recent action. Treasuries spent the first couple hours of action in a sideways range near their starting levels before extending to fresh highs alongside some recent selling in oil, which has WTI crude approaching $100/bbl. The market did not receive any top-tier data this morning, but the Minutes from the Fed Chairman Powell's last meeting at the helm of the FOMC will be released this afternoon and the U.S. Treasury will sell $16 bln in 20-yr bonds. Equities are off to a higher start with the S&P 500 (+0.6%) trailing the Nasdaq (+0.9%).
• Yield Check:
  • 2-yr: -5 bps to 4.07%
  • 3-yr: -6 bps to 4.15%
  • 5-yr: -5 bps to 4.28%
  • 10-yr: -4 bps to 4.63%
  • 30-yr: -3 bps to 5.15%