Bond Market Update

Short End Turns Higher

• U.S. Treasuries have climbed to fresh highs, lifting the 2-yr note into positive territory while continued strength in the long bond has its yield sitting just above its April low (4.836%). Treasuries began rising off their starting levels immediately after the cash start, continuing their advance through the release of a small dip in weekly Initial Claims (226,000; Briefing.com consensus 226,000; prior 230,000) and a rebound in the Philadelphia Fed Index (10.3; Brieifng.com consensus 10.0; prior -0.4%). Equities are off to a strong start with the S&P 500 (+0.9%) recovering the bulk of its post-FOMC loss.
• Yield Check:
  • 2-yr: -1 bp to 4.15%
  • 3-yr: -1 bp to 4.17%
  • 5-yr: -2 bps to 4.21%
  • 10-yr: -3 bps to 4.43%
  • 30-yr: -5 bps to 4.88%