Bond Market Update

Long End Slides

• U.S. Treasuries trade on their lows after a steady slide through the first couple hours of action. The trading day started with slim gains in shorter tenors, but selling pressure built across the curve immediately after the cash start. The early weakness, which follows an overnight advance in the price of oil has lifted yields on 3s, 5s, 7s, and 10s to fresh highs for the year while the 2-yr yield is on the verge of doing the same. Equities have also faced some early selling with the S&P 500 down 0.5%.
• Yield Check:
  • 2-yr: -1 bp to 4.34%
  • 3-yr: UNCH at 4.40%
  • 5-yr: +2 bps to 4.50%
  • 10-yr: +4 bps to 4.76%
  • 30-yr: +6 bps to 5.26%