Bond Market Update

Longer Tenors Defend Gains

• Recent action saw some backtracking from highs across the curve with the 2-yr note returning to little changed while longer tenors are hanging onto the bulk of today's gains. The market had a busy day on Thursday when new Fed Chairman Warsh announced plans for potential reform to almost all aspects of how the Fed conducts its business and communicates policy to investors, but today's session has unfolded in steady fashion. Barring some late turbulence, the complex is on track for a mixed finish for the week with the 10-yr yield down five basis points from last Friday's settlement while the 2-yr yield is up seven basis points for the week.
• Yield Check:
  • 2-yr: UNCH at 4.16%
  • 3-yr: -1 bp to 4.17%
  • 5-yr: -2 bps to 4.21%
  • 10-yr: -2 bps to 4.44%
  • 30-yr: -3 bps to 4.89%