Bond Market Update

Longer Tenors Pull Back

• Shorter-dated Treasuries are hanging onto roughly half of today's gains while the long bond has given back the bulk of its post-NFP gain with its yield now down just one basis point. However, even with the pullback from highs, Treasuries are still on track to record solid gains for the week as the market starts looking ahead to next week's economic calendar, which will feature the release of July CPI (Briefing.com consensus 0.1%; prior -0.4%) on Wednesday. The 10-yr yield is currently down ten basis points for the week while the 2-yr yield has decreased by nine basis points since last Friday. Equities are looking for an upbeat finish to the week with the S&P 500 up 0.5%.
• Yield Check:
  • 2-yr: -5 bps to 4.20%
  • 3-yr: -4 bps to 4.26%
  • 5-yr: -3 bps to 4.36%
  • 10-yr: -2 bps to 4.65%
  • 30-yr: -1 bp to 5.20%