Bond Market Update

Opening Gains Trimmed

• U.S. Treasuries trade near their flat lines after dipping from their morning highs. Treasuries climbed off their starting levels during the opening hour, but the past 30 minutes have seen some quick backtracking, which has reversed the early intraday progress. The 10-yr note is back at its flat line while shorter tenors remain slightly higher. The long bond, meanwhile, underperforms slightly after showing relative strength last week. Equities are off to a higher start, but they are struggling to extend their early gains, leaving the S&P 500 up 0.6% at this juncture. On a side note, the New York Fed will release its May Survey of Consumer Expectations later this morning.
• Yield Check:
  • 2-yr: -2 bps to 4.14%
  • 3-yr: -1 bp to 4.20%
  • 5-yr: -1 bp to 4.27%
  • 10-yr: UNCH at 4.54%
  • 30-yr: +1 bp to 5.01%