Bond Market Update

Losses Maintained

• Longer-dated Treasuries continue trading just below their rebound highs with yields on 10s and 30s spending the past couple hours in a one-basis point range while the 2-yr note has dipped from its morning high, returning into negative territory. Fed Chairman Warsh did not give markets much to chew on during his appearance at the ECB's policy forum in Portugal, but he noted that while inflation remains elevated, upside risks to inflation have receded. That said, there has been virtually no movement in rate expectations with the fed funds futures market still projecting one rate hike before the end of 2026. Equities are mixed into the early afternoon with weakness in chip stocks countered by gains in most other sectors.
• Yield Check:
  • 2-yr: +2 bps to 4.16%
  • 3-yr: +3 bps to 4.17%
  • 5-yr: +3 bps to 4.22%
  • 10-yr: +5 bps to 4.47%
  • 30-yr: +6 bps to 4.96%