Bond Market Commentary

Over in bond land, Treasury yields are lower before the opening bell Tuesday ahead of comments from multiple Federal Reserve (Fed) speakers today about the economy and the financial markets. Investors look forward to the Federal Open Market Committee’s (FOMC’s) May 1 meeting minutes, due tomorrow, and major economic releases scheduled for this week. The yield on the 10-year note is decreasing two basis points (0.02%) to 4.42%, while the 30-year bond yield is falling one basis point (0.01%) to 4.57%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is down two basis points (0.02%) to 4.83%.

Treasury yields were higher on Monday, as investors looked forward to April housing data and the initial release for May’s Purchasing Managers’ Indexes (PMIs) scheduled for this week. The yield on the 10-year note was up two basis points (0.02%) to 4.44%, while the 30-year bond yield also rose two basis points (0.02%) to 4.58%. The yield on the two-year note increased three basis points (0.03%) to 4.85%.

In the auction space, the U.S. Treasury is set to issue $75 billion in 42-day cash management bills (CMB).

In the central bank space, multiple Fed members are scheduled to speak about the U.S economy, monetary policy, financial markets, and regional banking supervision.

The Bloomberg 30-day visible supply rose $4.484 billion to $14.362 billion on Monday, above the 12-month average of $9.166 billion.

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