Bond Market Update

Losses Widened

• U.S. Treasuries have faced continued pressure, which lifted the 30-yr yield to its highest level since mid-July in morning trade while yields on shorter tenors are now just below their March highs with the 2-yr yield about six basis points below its March peak and the 10-yr yield just three basis points below its highest level from March. Today's selling comes amid ongoing worries about the passage of maritime traffic through the Strait of Hormuz, though U.S. Central Command announced that two ships were escorted through the Strait today. Equities have turned lower with the S&P 500 down 0.5%.
• Yield Check:
  • 2-yr: +8 bps to 3.97%
  • 3-yr: +8 bps to 3.99%
  • 5-yr: +8 bps to 4.10%
  • 10-yr: +7 bps to 4.45%
  • 30-yr: +6 bps to 5.03%