Bond Market Commentary

Over in bond land, Treasury yields are higher before the opening bell Monday as investors evaluated rhetoric from the U.S. and Iran regarding reopening the Strait of Hormuz and the potential for strikes on key infrastructure in the region, before President Donald Trump announced a postponement of strikes on energy targets. Investors are also looking forward to tomorrow’s preliminary reading of March purchasing managers’ indexes (PMIs). As of 6:57 AM ET, the yield on the 10-year note is rising five basis points (0.05%) to 4.43%, while the 30-year bond yield is increasing two basis points (0.02%) to 4.96%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is up 10 basis points (0.10%) to 4.00%. 

Treasury yields were higher on Friday as markets evaluated escalations in the Iran War. The yield on the 10-year note was up 13 basis points (0.13%) to 4.38%, while the 30-year bond yield rose 10 basis points (0.10%) to 4.94%. The yield on the two-year note increased 11 basis points (0.11%) to 3.90%.

On the data front, the Federal Reserve (Fed) Bank of Chicago’s National Activity Index for February is expected to come in at 0.04, down from the prior month’s 0.18. Construction spending is projected to have increased 0.1% month-over-month in January, versus the prior month’s increase of 0.3%.

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, Fed Governor Stephen Miran is scheduled to speak today.

Mortgage rates were higher in the latest week. For the week ending March 19, the average 30-year fixed mortgage rate was up 11 basis points (0.11%) to 6.22%, versus 6.67% a year ago. The 15-year fixed mortgage rate increased four basis points (0.04%) to 5.54%, versus 5.83% 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.