Bond Market Update

Recent Selling Continues

• U.S. Treasuries trade on their lows after widening their starting losses. The Treasury complex started the session just below the unchanged level, followed by a brief attempt at turning positive, which was rebuffed in quick order. Once again, shorter tenors have been at the forefront of the early selling due in part to a continued rise in WTI crude, which has climbed past $87/bbl. With today's early selling, yields on the 7-yr note and shorter tenors are now at fresh highs for the year while yields on 10s and 30s are now within five basis points of 2026 highs of their own. Equities are facing some early softness with the S&P 500 (-0.2%) and Nasdaq (-0.5%) showing losses while the Dow (+0.2%) outperforms.
• Yield Check:
  • 2-yr: +5 bps to 4.31%
  • 3-yr: +5 bps to 4.35%
  • 5-yr: +4 bps to 4.41%
  • 10-yr: +3 bps to 4.66%
  • 30-yr: +2 bps to 5.15%