Bond Market Update

Longer Tenors Remain Behind

• U.S. Treasuries remain trapped in a sideways range just above their morning lows after a failed bounce attempt about 90 minutes ago. Treasuries slowly crawled off their starting lows in morning trade, seeing a brief acceleration to fresh highs after Treasury Secretary Bessent appeared on CNBC, where he said that increased buybacks of longer-dated Treasuries could exceed the new $4 bln ceiling that was announced yesterday. The Treasury Secretary also commented on President Trump's plan to isolate Iran economically and he will deliver a press conference on the subject on Monday. The brief push to fresh highs was followed by an immediate return to the day's opening levels in longer tenors with the 30-yr yield up five basis points for the day while the short end is ahead.
• Yield Check:
  • 2-yr: +1 bp to 4.19%
  • 3-yr: +3 bps to 4.28%
  • 5-yr: +4 bps to 4.39%
  • 10-yr: +5 bps to 4.70%
  • 30-yr: +5 bps to 5.25%