Bond Market Update

 Hovering Near Highs

• U.S. Treasuries hover near their highs with the front end defending a modest gain while longer tenors remain in the red. Barring an aggressive late rally, the 30-yr yield will finish the day at a fresh high for the year, a level not seen in 19 years. With little technical resistance between the current level and the 2007 high (5.41%), the near-term performance of the long bond will be watched closely with investors eager to see if today's move invites follow-through selling, which would reverberate through other markets.
• Yield Check:
  • 2-yr: -2 bps to 4.22%
  • 3-yr: UNCH at 4.28%
  • 5-yr: +2 bps to 4.37%
  • 10-yr: +4 bps to 4.66%
  • 30-yr: +6 bps to 5.20%