Bond Market Update

Steady in Early Trade

• U.S. Treasuries trade just above their flat lines, having maintained a sideways range in the early going after Treasury futures recovered their slim losses just before the cash start. The response to the May CPI report (0.5%; Briefing.com consensus 0.5%) has been mildly positive, thanks to a slightly cooler-than-expected Core CPI (0.2%; Briefing.com consensus 0.3%). Still, the year-over-year rate for Core CPI accelerated to 2.9% from 2.8%, so the report was not great overall. The slightly higher start is keeping yields just below their highest levels in nearly three weeks while equities are facing early pressure after yesterday's volatility with the S&P 500 and Nasdaq down 0.2% and 0.4%, respectively.
• Yield Check:
  • 2-yr: UNCH at 4.12%
  • 3-yr: UNCH at 4.18%
  • 5-yr: UNCH at 4.26%
  • 10-yr: UNCH at 4.53%
  • 30-yr UNCH at 5.01%