Bond Market Update

Holding Steady

• U.S. Treasuries continue hovering just above their opening levels after spending the past couple hours in a sideways range. The market started the day with an extension of today's gains, assisted by comments from Fed Governor Waller, who said that some signs of disinflation are being seen, though he acknowledged that inflation remains meaningfully above target. Still, he said that he would vote to hold the fed funds rate range steady at the September meeting if there are no negative surprises in upcoming data. The market quickly gave back the additional gains that followed comments from Governor Waller, but support was found near today's opening levels, establishing the intraday trading range. Equities have built on their gains with the S&P 500 (+1.1%) turning positive for the week.
• Yield Check:
  • 2-yr: -6 bps to 4.33%
  • 3-yr: -6 bps to 4.39%
  • 5-yr: -6 bps to 4.50%
  • 10-yr: -5 bps to 4.75%
  • 30-yr: -3 bps to 5.23%