Bond Market Update

Pressure Returns

• Recent action saw the 5-yr note and shorter tenors slide to fresh lows for the day while the 10-yr note is on the verge of doing the same. Treasuries spent the first couple hours of action in a steady bounce that briefly pushed 10s and 30s into the green, but that move met quick resistance, which coincided with a renewed rise in the price of oil. WTI crude has climbed to a fresh session high near $90/bbl after the U.S. Central Command confirmed that recent strikes were carried out against the Iranian regime. In addition to lifting oil and pressuring Treasuries, the news has been followed by some backtracking off intraday highs in the stock market. The S&P 500 is down 0.6% while the Nasdaq (-0.9%) underperforms.
• Yield Check:
  • 2-yr: +3 bps to 4.38%
  • 3-yr: +4 bps to 4.45%
  • 5-yr: +3 bps to 4.54%
  • 10-yr: +2 bps to 4.78%
  • 30-yr: UNCH at 5.25%