Bond Market Update

Drifting Along

• U.S. Treasuries of most tenors hover near their starting levels after withstanding some early volatility, which briefly sent the 5-yr yield to its highest level since October 2023. Treasuries followed their post-CPI slide with a quick rally to highs while the past couple hours have seen a slow drip that has sent the 10-yr note back into the red while the long bond continues hanging onto a slim gain. Barring some late volatility, Treasuries remain on course for a sharply lower finish to the abbreviated week with the 2-yr yield up 24 basis points from last Friday's settlement while the 30-yr yield is up ten basis points for the week.
• Yield Check:
  • 2-yr: +7 bps to 4.62%
  • 3-yr: +5 bps to 4.70%
  • 5-yr: +3 bps to 4.77%
  • 10-yr: +1 bp to 4.95%
  • 30-yr: -2 bps to 5.35%