Bond Market Update

Early Gains Sustained

• U.S. Treasuries trade on their highs after a late-morning rally off their unchanged levels past their morning highs. The recent push took place amid significant weakness in technology stocks, which has driven the S&P 500 (-1.6%) back to levels seen in early May. Interestingly, the gains in Treasuries have been limited when compared to the steep selling in stocks. The 10-yr yield hit a high just below 4.56% around 11:30 ET and is now down only four basis points from that level, approaching yesterday's low. The U.S. Treasury will sell $58 bln in 3-yr notes atop the hour.
• Yield Check:
  • 2-yr: -4 bps to 4.12%
  • 3-yr: -4 bps to 4.17%
  • 5-yr: -3 bps to 4.25%
  • 10-yr: -3 bps to 4.52%
  • 30-yr: -1 bp to 5.01%