Bond Market Commentary

Over in bond land, Treasury yields are little changed before the opening bell Tuesday amid further developments in the U.S.-Iran conflict, with the Houthis threatening shipping through the Red Sea and continued efforts by mediators to ease the fighting. Investors will continue to watch for earnings reports, along with the Federal Reserve (Fed) Bank of Philadelphia’s July Nonmanufacturing Business Outlook Survey, out today. As of 6:56 AM ET, the yield on the 10-year note is rising one basis point (0.01%) to 4.60%, while the 30-year bond yield is also increasing one basis point (0.01%) to 5.12%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is down one basis point (0.01%) to 4.20%.

Treasury yields were higher on Monday as the Leading Index for June declined more than expected, falling 0.2% month-over-month (MOM), compared with a 0.1% increase in May. The yield on the 10-year note was up four basis points (0.04%) to 4.59%, while the 30-year bond yield also rose four basis points (0.04%) to 5.11%. The yield on the two-year note increased three basis points (0.03%) to 4.21%.

In the auction space, the U.S. Treasury is set to issue $95 billion in six-week bills.

The Bloomberg 30-day visible supply rose $149 million to $14.359 billion on Monday, above the 12-month average of $13.981 billion.

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