Bond Market Update

Gains Defended

• U.S. Treasuries trade at their best levels of the day, having spent the bulk of the session in a sideways range near their starting levels. Treasuries established a narrow trading range during the first couple hours of action with the 10-yr yield bouncing between 4.372% and 4.348%. The market has remained near highs going into the early afternoon even though crude oil has reclaimed nearly half of its loss that briefly drove it below $90/bbl. Oil is back near $95/bbl, but Treasuries and equities have sustained their gains.
• Yield Check:
  • 2-yr: -7 bps to 3.87%
  • 3-yr: -8 bps to 3.89%
  • 5-yr: -7 bps to 4.00%
  • 10-yr: -6 bps to 4.35%
  • 30-yr: -4 bps to 4.94%