Bonds & Rates
Treasury yields stay elevated as the market watches inflation
Longer-dated yields are still high, while bond proxies trade mixed and credit holds up better than Treasurys.
Treasury yields stay firmly above recent levels. The 5-year Treasury rises 0.2% to 4.375, the 10-year Treasury is essentially flat at 4.682, and the 30-year Treasury rises 0.2% to 5.247. The weekly move is still higher across the curve, with the 5-year and 30-year each up 1.4% over the week.
Bond proxies are mixed. LQD, the investment-grade credit proxy, rises 0.1% on the day but remains below its 50-day and 200-day averages. HYG adds 0.1%, while MUB edges up 0.1%. TLT slips 0.1%, keeping long-duration exposure under pressure.
The macro headlines explain why fixed income stays tense. CNBC Markets says the U.S. budget deficit surged in July to the highest level since March 2021, and CNBC World says CPI rises 0.1% in July with the annual rate at 3.4%. That combination keeps rates and fiscal funding front and center.
The rate move also shows up in the broader market tone. Growth stocks and AI names keep attracting bids, but longer-end yields remain high enough to make the bond market part of every risk check.