Bond Market Update

Sitting Near Lows

• U.S. Treasuries continue trading near their starting levels, lifting yields on 10s and shorter tenors to fresh highs for the year while the 30-yr yield is on the verge of doing the same. Once again, Treasury futures faced pressure heading into the cash open, as the market remained focused on the price of oil, which is up nearly $5/bbl today, rising past $91/bbl. Given oil's recent rally, the market is once again concerned about higher inflation persisting for longer, which is being reflected by the losses across the curve. Equities are off to a soft start with consumer and some technology stocks among the laggards and the S&P 500 down 1.1%.
• Yield Check:
  • 2-yr: +6 bps to 4.36%
  • 3-yr: +6 bps to 4.40%
  • 5-yr: +5 bps to 4.46%
  • 10-yr: +5 bps to 4.71%
  • 30-yr: +4 bps to 5.18%