Bonds & Rates
Treasury yields rise as bond market watches the Fed
Yields move higher across the curve, while credit funds finish mostly lower.
Treasury yields climb on the day. The 5-year Treasury rises 1.93% to 4.481%, the 10-year Treasury gains 1.03% to 4.72%, and the 30-year Treasury adds 0.29% to 5.206%.
The move leaves the front and middle of the curve firmer than the long bond. The 5-year also sits at its 52-week high, while the 10-year remains just 0.53% below its 52-week high.
Credit ETFs are softer. LQD falls 0.4% to 106.35, HYG slips 0.2% to 79.74, and MUB dips 0.2% to 105.22. TLT also edges lower, down 0.3% to 82.88.
The bond tone lines up with headlines about Warsh’s inflation focus and comments that a September rate hike is now in play. The data here does not show a bigger credit stress signal, but it does show higher rates and a cautious fixed-income backdrop.