Bond Market Update

Drifting Near Highs

• U.S. Treasuries have inched down from their highs over the past two hours, though even with the recent backtracking, all tenors remain comfortably above their starting levels. Overall, the market is on course for a quiet finish to a week that saw some volatility, but yields on 5s and shorter tenors are now essentially unchanged for the week while yields on 10s and 30s remain modestly lower from last Friday's settlement. Elsewhere, equities have continued padding their gains with the S&P 500 (+0.8%) now up 2.3% for the week even though crude oil has climbed back to $96/bbl, trimming this week's loss to about $6/bbl.
• Yield Check:
  • 2-yr: -3 bps to 3.89%
  • 3-yr: -3 bps to 3.92%
  • 5-yr: -3 bps to 4.02%
  • 10-yr: -3 bps to 4.37%
  • 30-yr: -2 bps to 4.95%