Bond Market Commentary

Over in bond land, Treasury yields are higher before the opening bell Monday as investors assess developments in the U.S.-Iran conflict over the weekend, with both parties exchanging strikes. Investors will also be looking ahead to this week’s inflation and consumer sentiment data, along with testimony from Federal Reserve (Fed) Chair Kevin Warsh. As of 6:56 AM ET, the yield on the 10-year note is rising one basis point (0.01%) to 4.57%, while the 30-year bond yield is increasing two basis points (0.02%) to 5.08%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is up one basis point (0.01%) to 4.22%.

Treasury yields were mostly higher on Friday to end out the week. The yield on the 10-year note was up one basis point (0.01%) to 4.56%, while the 30-year bond yield was unchanged at 5.06%. The yield on the two-year note increased three basis points (0.03%) to 4.21%.

On the data front, the U.S. federal budget balance for June is expected to show a deficit of $128.3 billion versus the prior month’s $292.6 billion.

In the auction space, the U.S. Treasury is set to issue $92 billion in 13-week bills and $79 billion in 26-week bills.

In the central bank space, Fed Vice Chair for Supervision Michelle Bowman and Fed Governor Christopher Waller are scheduled to speak today.

Mortgage rates were higher in the latest week. For the week ending July 9, the average 30-year fixed mortgage rate was up six basis points (0.06%) to 6.49%, versus 6.72% a year ago. The 15-year fixed mortgage rate increased three basis points (0.03%) to 5.82%, versus 5.86% a year ago.

None at this time.

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.