Bond Market Update

Gains Trimmed

• U.S. Treasuries continue hovering a bit below their starting levels, making for a quiet intraday start to August after the higher open. The belly outperformed from the start and it remains ahead after a dip from opening highs that was pretty uniform across the curve. Oil has remained just under $80/bbl, essentially unchanged from the Sunday evening open, making for a supportive factor. Equities have also benefited from the associated sentiment boost, with the S&P 500 (+1.3%) now just 30 points away from its record high that was set in early June.
• Yield Check:
  • 2-yr: -3 bps to 4.26%
  • 3-yr: -4 bps to 4.32%
  • 5-yr: -6 bps to 4.41%
  • 10-yr: -6 bps to 4.69%
  • 30-yr: -4 bps to 5.23%