Bond Market Update

Early Losses Extended as Oil Rises

• U.S. Treasuries trade on their lows after adding to their initial losses with the 5-yr note and shorter tenors showing relative weakness. Treasuries tried to recover their opening losses during the first few minutes of action, but the move was rebuffed quickly after the long bond approached but could not overtake yesterday's closing level. The early selling has returned the 2-yr yield to its highest level of the year while crude oil has recovered its overnight loss, rising back above $103/bbl. Equities are off to a mixed, but largely flat start with the Nasdaq (+0.2%) ahead slightly while the S&P 500 (-0.1%) lags.
• Yield Check:
  • 2-yr: +5 bps to 4.74%
  • 3-yr: +6 bps to 4.82%
  • 5-yr: +6 bps to 4.86%
  • 10-yr: +5 bps to 5.00%
  • 30-yr: +3 bps to 5.33%