Bond Market Update

Longer Tenors Pad Gains

• Longer-dated Treasuries trade just above their midday highs while shorter tenors are a bit closer to their opening levels. With no top-tier data and Treasury Secretary Bessent's looming press conference, today's action has unfolded in steady fashion. Longer tenors have outperformed after it was reported that the Treasury could tap into its general account to fund buybacks of longer tenors. While Treasury Secretary Bessent's upcoming speech is expected to focus on Iran, he is likely to face some questions about the Treasury's buyback plans. Equities remain in the red with the S&P 500 (-0.2%) trading ahead of the Nasdaq (-0.5%).
• Yield Check:
  • 2-yr: +1 bp to 4.24%
  • 3-yr: -1 bp to 4.30%
  • 5-yr: -2 bps to 4.41%
  • 10-yr: -4 bps to 4.69%
  • 30-yr: -6 bps to 5.22%