Bonds & Rates
Treasury yields dip as rate-sensitive trades stay busy
Short and intermediate Treasury yields fall, credit stays mixed, and mortgage rates tick higher on the week.
Treasury yields are lower on the day. The 2-Yr Treasury yield falls to 4.18% from 4.26%, while the 5-Yr Treasury yield drops to 4.255% from 4.255%, and the 10-Yr Treasury yield slips to 4.545% from 4.545%. The 30-Yr Treasury yield eases to 5.083%.
Credit is steady to slightly firmer in proxy terms, with LQD up 0.4% and HYG up 0.2%. Official spread data show IG corporate spreads at 0.79% versus 0.78% prior, and HY corporate spreads at 2.72% versus 2.69% prior.
Mortgage rates rise to 6.49% from 6.43% in the latest weekly print. CNBC Markets also points to Warsh’s comments on independence, while CNBC Economy flags a softer June wholesale price report and a June CPI report that rose 3.5% annually.
The broader rate setup remains mixed. TLT gains 0.2%, but it stays below its 200-day average, and the 30-Yr Treasury yield remains well above the 200-day level in the supplied technicals.