Bonds & Rates
Yields climb as traders price more policy tension
Treasury rates rise across maturities while credit holds up better than government bonds.
U.S. Treasury yields push higher from front to back. The 2-year yield is 4.13%, up from 4.14% on the prior reading, while the 3-month yield sits at 3.87%, up from 3.82%. The 10-year yield rises to 4.569%, and the 30-year reaches 5.065%.
The move in rates lands alongside a more cautious tone in credit. IG credit proxy LQD slips 0.2% and the official IG spread is 0.76%, up from 0.75%. High-yield credit is steadier, with HYG down just 0.1% and the official HY spread at 2.67%, down from 2.72%.
CNBC Markets reports Fed officials were split on the direction of interest rates at their last meeting. That keeps policy chatter front and center for rates traders, even as the bigger intraday market story comes from oil and geopolitical risk.
Mortgage and muni proxies both soften. MUB falls 0.3%, while TLT drops 0.2%. The move fits a session where duration gets sold and higher oil prices add another layer of inflation concern.