Bond Market Update

Long Bond Remains Weak

• U.S. Treasuries have seen little movement since this morning, though the long bond has faced continued pressure that has its yield on the verge of inching to a fresh high for the year. Other tenors have held up better, trading between their morning lows and their opening levels. As mentioned at the end of last week, the recent weakness in the long bond is catching the attention of investors and market commentators, given the fresh near two-decade high, which reflects worries about persistent inflation, deficits, and uncertainty associated with massive AI investment spending. Equities have continued drifting near their flat lines with the S&P 500 down 0.2%.
• Yield Check:
  • 2-yr: UNCH at 4.17%
  • 3-yr: -1 bp to 4.24%
  • 5-yr: UNCH at 4.37%
  • 10-yr: +1 bp to 4.71%
  • 30-yr: +3 bps to 5.29%