Bond Market Update

Short End Bounces

• Longer-dated Treasuries remain in the red, but the first couple hours of action have seen a rise off lows that has lifted the 2-yr note back to its unchanged level while the 10-yr note has reclaimed about a third of its initial loss. Fed Chairman Warsh is taking part in the European Central Bank's policy forum in Portugal, but his early remarks have not contained any surprises. He reiterated that he intends to wean markets off relying closely on forward guidance from Fed officials, adding that some news on his planned task force appointees will likely be made next week. Equities are off to a modestly lower start with the S&P 500 (-0.2%) dipping after two days of solid gains.
• Yield Check:
  • 2-yr: UNCH at 4.14%
  • 3-yr: +1 bp to 4.15%
  • 5-yr: +2 bps to 4.20%
  • 10-yr: +4 bps to 4.46%
  • 30-yr: +6 bps to 4.96%