Bond Market Update

Lacking Catalysts

• The momentum of the overnight trade has waned. There has been no follow-through in the cash session.
• Stocks are rallying, with semiconductor shares and mega-cap stocks doing the driving.
• Oil prices continue to slide. WTI crude is down 3.8% to $96.51/bbl.
• Chicago Fed President Austan Goolsbee (not a voting FOMC member) said in a speech today that persistent supply shocks may require the Fed to act on inflation.
• With no economic data today, trading catalysts are few and far between. There isn't any significant economic data of note out on Tuesday either, but there will be a $69 billion 2-yr note auction.
• Yield check:
  • 2-yr: unch at 4.74%
  • 3-yr: -2 bps to 4.81%
  • 5-yr: -3 bps to 4.83%
  • 10-yr: -3 bps to 4.97%
  • 30-yr: -3 bps to 5.30%