Bonds & Rates
Treasury yields stay elevated as credit holds mixed
Rates remain near recent highs, with equities and volatility taking the bigger headlines.
Treasury yields finish mixed but still elevated. The 5-Yr Treasury closes at 4.552, down 0.1% on the day, the 10-Yr ends at 4.796, flat, and the 30-Yr finishes at 5.267, down 0.0%.
The level is still the story. The 10-Yr sits above its 50-day average of 4.61 and its 200-day average of 4.35, while the 5-Yr is above both its 50-day and 200-day averages as well.
Credit is softer in places. LQD rises 0.1% on the day but remains below both moving averages, HYG is basically unchanged at 0.01% and stays above both moving averages, and MUB falls 0.1% while remaining below both its 50-day and 200-day averages.
CNBC’s bond and economy headlines keep the pressure point clear: private payrolls rose by 38,000 in August, euro zone inflation is back above 3%, and Fed speakers continue to sound uneasy about inflation.