Bond Market Update

Losses Extended

• U.S. Treasuries have widened their losses with the front end leading the move, though the entire complex is pinned to lows at this juncture. Today's selling has taken place even though crude oil has essentially held its ground near $87/bbl, and with today's losses, the 30-yr yield is now up two basis points for the week, which is not what Treasury Secretary Bessent hoped to see in the wake of the announcement about the looming increase to Treasury's maximum buybacks of longer tenors. Equities trade just shy of their highs with the S&P 500 (+0.6%) narrowing this week's loss to 1.3%.
• Yield Check:
  • 2-yr: +4 bps to 4.23%
  • 3-yr: +4 bps to 4.31%
  • 5-yr: +4 bps to 4.42%
  • 10-yr: +4 bps to 4.74%
  • 30-yr: +4 bps to 5.28%