Bonds & Rates
Yields stay high as bond proxies sag
Treasuries keep climbing, and longer-duration funds remain under pressure after a strong month for stocks.
The bond market does not get a relief bid. The 5-Yr Treasury rises to 5.055, the 10-Yr Treasury to 5.277, and the 30-Yr Treasury to 5.63. All three are still above their 200-day averages, keeping the rate backdrop firm.
That pressure shows up in bond funds and credit. TLT slips 0.3%, LQD falls 0.2%, MUB drops 0.4%, and VBTLX adds 0.2% but remains below its 200-day average. HYG is basically unchanged at 0.0%, suggesting high yield is not getting a strong bid either way.
The day’s bond move fits the broader risk story after the September jobs report showed just 29,000 payroll gains and a 4.2% unemployment rate. CNBC’s bond and economy coverage says traders see little chance of a Fed hike in October, but the long end of the curve is still acting like the market wants more term premium, not less.
Rates also matter for cross-asset pricing. The dollar index edges down 0.2% to 101.924, but the strength in yields is enough to keep pressure on duration-sensitive assets like gold and long Treasury ETFs.