Bond Market Update

Resisting At All Cost

• U.S. Treasuries have faced some light pressure in recent action, but it was enough to send yields on 10s and shorter tenors to fresh highs for the year. The market quickly bounced off fresh lows, returning action to levels seen in mid-morning trade, but the underlying pressure has kept making itself apparent. Treasuries tried to bounce out of the gate, receiving some slight support from a dip in the price of oil, but WTI crude is now higher on the day, approaching $91/bbl. Equities, meanwhile, are hanging onto their starting gains with the S&P 500 (-0.5%) trimming this week's loss to 0.6%.
• Yield Check:
  • 2-yr: -1 bp to 4.38%
  • 3-yr: -1 bp to 4.45%
  • 5-yr: UNCH at 4.55%
  • 10-yr: UNCH at 4.80%
  • 30-yr: UNCH at 5.27%