Bond Market Update

Losses Widened

• U.S. Treasuries trade on their lows after adding to their starting losses. The market attempted to stabilize during the first hour of trade, but that effort has given way to some renewed selling, which has sent yields on longer tenors back to their highs from last week. Furthermore, yields on 10s and 30s are now within ten basis points of their respective highs from mid-May when WTI crude was still trading above $100/bbl, about $20/bbl north of its current level. Equities are defending their modest gains as outperformance in technology offsets weakness in most other sectors.
• Yield Check:
  • 2-yr: +6 bps to 4.23%
  • 3-yr: +7 bps to 4.27%
  • 5-yr: +6 bps to 4.34%
  • 10-yr: +6 bps to 4.60%
  • 30-yr: +5 bps to 5.12%