Bond Market Update

Long End Backtracks

• U.S. Treasuries continue trading in the green, though the long bond is now up just slightly after giving back the bulk of its post-CPI advance. Treasuries backed off their post-CPI highs immediately after reaching those levels, but they still held onto the bulk of their gains in mid-morning trade. However, the past hour has seen some additional backtracking. While today's CPI report was a welcomed sight, the market is cognizant that Iran-related concerns are back on the table, resulting in renewed volatility in the price of oil, which will put upward pressure on the CPI reading for July. Oil has dipped below $80/bbl but remains on track for its highest settlement since mid-June.
• Yield Check:
  • 2-yr: -6 bps to 4.20%
  • 3-yr: -5 bps to 4.25%
  • 5-yr: -4 bps to 4.32%
  • 10-yr: -3 bps to 4.58%
  • 30-yr: -1 bp to 5.09%