Bonds & Rates
Yields rise as bond prices soften
Treasuries sell off modestly, while credit and mortgage data point to a firmer rates backdrop.
Treasury yields move higher across the curve. The 3-month Treasury yield is 3.83%, down from 3.87% on July 8, but the 2-year yield rises to 4.16% from 4.21% on July 9. The 5-year yield climbs to 4.308%, the 10-year to 4.569%, and the 30-year to 5.071%.
Bond proxies are softer. TLT is down 0.02%, and the broader bond fund VBTLX adds just 0.1%. LQD falls 0.23%, while HYG is essentially flat at down 0.05%.
Credit spreads are unchanged in the official data, with IG at 0.76% and high yield at 2.7% on July 9. That leaves the move in rates more about higher yields than wider spreads.
The mortgage backdrop edges up as well. The 30-year fixed mortgage rate rises to 6.49% from 6.43% a week earlier.