Bond Market Commentary

Over in bond land, Treasury yields are mostly unchanged before the opening bell Monday ahead of comments from multiple Federal Reserve (Fed) speakers today. Investors look forward to the Federal Open Market Committee’s (FOMC’s) May 1 meeting minutes, due Wednesday, and major economic releases scheduled for this week. The yield on the 10-year note is unchanged at 4.42%, while the 30-year bond yield is also unchanged at 4.56%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is unchanged at 4.82%.

Treasury yields were higher on Friday, as investors continued to assess last week’s inflation data and speculated on the Fed’s future path of monetary policy. The yield on the 10-year note was up four basis points (0.04%) to 4.42%, while the 30-year bond yield rose five basis points (0.05%) to 4.56%. The yield on the two-year note increased two basis points (0.02%) to 4.82%.

On the data front Friday, the Conference Board’s U.S. Leading Economic Index decreased 0.6% month-over-month in April versus the prior month’s decrease of 0.3%.

In the auction space, the U.S. Treasury is set to issue $70 billion in 13-week bills and $70 billion in 26-week bills.

In the central bank space, multiple Fed members are scheduled to speak about the U.S. economic outlook, monetary policy, and bank regulation.

Mortgage rates were lower in the latest week. For the week ending May 16, the average 30-year fixed mortgage rate was down seven basis points (0.07%) to 7.02%, versus 6.39% a year ago. The 15-year fixed mortgage rate decreased 10 basis points (0.10%) to 6.28%, versus 5.75% a year ago.

The Bloomberg 30-day visible supply fell $1.696 billion to $9.878 billion on Friday, above the 12-month average of $9.163 billion.

This information is obtained from sources and data considered to be reliable, but its accuracy and completeness is not guaranteed by Wells Fargo Advisors. Additional information available by request.

Wells Fargo Advisors is registered with the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, but is not licensed or registered with any financial services regulatory authority outside of the U.S. Non-U.S. residents who maintain U.S.-based financial services account(s) with Wells Fargo Advisors may not be afforded certain protections conferred by legislation and regulations in their country of residence in respect of any investments, investment transactions or communications made with Wells Fargo Advisors.

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.