Bond Market Update

Shorter Tenors Widen Losses

• Recent action saw 2s and 5s slip to fresh session lows while the 10-yr note has essentially held just above its mid-morning low. The long bond has shown some strength, recovering roughly half of its loss that followed this morning's release of the May jobs report. Barring some late buying, Treasuries are on track to record losses for the week with the 2-yr yield up four basis points from last Friday's settlement while the 10-yr yield is up two basis points for the week. Elsewhere, equities have widened their losses with the S&P 500 now down 1.7% while crude oil has widened its loss, approaching $90/bbl.
• Yield Check:
  • 2-yr: +11 bps to 4.16%
  • 3-yr: +12 bps to 4.22%
  • 5-yr: +10 bps to 4.29%
  • 10-yr: +6 bps to 4.54%
  • 30-yr: +3 bps to 5.00%