Bond Market Commentary

Over in bond land, Treasury yields are higher before the opening bell Monday as investors evaluate developments in U.S.-Iran negotiations, though shipping through the Strait of Hormuz remains extremely limited. Investors will be closely watching tomorrow’s’ preliminary June Purchasing Managers’ Indexes, along with May’s personal income, personal spending, and Personal Consumption Expenditures (PCE) deflator, set for release on Thursday. As of 6:56 AM ET, the yield on the 10-year note is rising three basis points (0.03%) to 4.48%, while the 30-year bond yield is increasing two basis points (0.02%) to 4.92%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is up four basis points (0.04%) to 4.22%. 

Treasury yields were mostly lower on Thursday following the signing of a ceasefire extension between the U.S. and Iran. Initial jobless claims fell and continuing claims for the week prior picked up. Meanwhile, the leading index for May increased as expected, rising 0.1%. The yield on the 10-year note was down four basis points (0.04%) to 4.45%, while the 30-year bond yield fell three basis points (0.03%) to 4.90%. The yield on the two-year note was unchanged at 4.18%.

In the auction space, the U.S. Treasury is set to issue $89 billion in 13-week bills and $77 billion in 26-week bills.

In the central bank space, Federal Reserve Governor Christopher Waller is scheduled to speak today.

Mortgage rates were lower in the latest week. For the week ending June 18, the average 30-year fixed mortgage rate was down five basis points (0.05%) to 6.47%, versus 6.81% a year ago. The 15-year fixed mortgage rate decreased three basis points (0.03%) to 5.81%, versus 5.96% a year ago.

None at this time.

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