Bond Market Update

Shallow Rebound Sustained

• U.S. Treasuries have extended their rebound off morning lows, though not by much. The slow rebound off morning lows has been paced by the long bond, which is somewhat encouraging, but today's gain only puts the 30-yr yield near the midpoint of yesterday's range. Still, the market would rather see some stabilization in the long end rather than an extension of yesterday's selling. Today's opening increase in yields caught the attention of the stock market, which remains in the red as the S&P 500 (-0.5%) feels the pressure of relative weakness in top-weighted technology (-2.0%). On a side note, crude oil hovers about $0.50/bbl below today's high and just south of $85/bbl.
• Yield Check:
  • 2-yr: -1 bp to 4.17%
  • 3-yr: -1 bp to 4.25%
  • 5-yr: -1 bp to 4.37%
  • 10-yr: -1 bp to 4.71%
  • 30-yr: -2 bps to 5.29%