Tuesday Bond Market Recap: Despite Equity Rally, Credit Spreads Widen

By Rom Badilla, CFA

U.S. Treasury yields sold off after yesterday's s 3-Year auction and the late day rally in equities. The “belly” of the curve underperformed as the yield on the 5-Year increased 5 basis points to 1.98 percent. The 10-Year closed the session at 3.19 percent, an increase of 4 basis points while the Long Bond advanced 3 basis points to a yield of 4.11 percent. The front also saw higher yields as both the 2 and 3-Year increased 3 basis points to 0.74 and 1.16 percent, respectively.

10-Year Treasury Yield Intraday Chart