Bond Market Update

Long End Lags

• U.S. Treasuries have faced some early pressure in longer tenors, though the losses remain limited at this time. That said, the opening selling was enough to drive the 30-yr yield past its July high to a fresh 19-year high at 5.290%. The early weakness in longer tenors puts the spotlight back on the long bond after it staged a short-lived bounce from its July weakness. Equities are off to a subdued start with the S&P 500 (-0.1%) holding a slim loss while the Nasdaq (+0.1%) outperforms slightly.
• Yield Check:
  • 2-yr: UNCH at 4.17%
  • 3-yr: -1 bp to 4.24%
  • 5-yr: UNCH at 4.36%
  • 10-yr: UNCH at 4.70%
  • 30-yr: +1 bp to 5.28%