U.S. Treasury Bond Recap – Shorter Tenors Weakened Most in June as Growth Concerns Grew

U.S. Treasuries closed the June quarter off Thursday rallying for the second consecutive day of strong gains across the curve. The 10-year yield has in recent weeks retreated from an end-of-day high of 3.482% reached on June 14 after mounting one of its fastest increases in history to start 2022. Thursday’s advance pressured the 10-yr yield back below its 50-day moving average (2.994%) to its lowest level in over three weeks. For the half year investment-grade bonds, as measured by the iShares Core U.S. Aggregate Bond exchange-traded fund, lost 11% posting their worst start to a year in history.

US Treasuries Yield June Performance

Yields on June 30, Over Month

  • 2-yr: -14 bps to 2.93% (+39 bps for the month)
  • 3-yr: -16 bps to 2.98% (+27 bps for the month)
  • 5-yr: -15 bps to 3.00% (+19 bps for the month)
  • 10-yr: -12 bps to 2.97% (+13 bps for the month)
  • 30-yr: -9 bps to 3.12% (+6 bps for the month)

Treasury yields largely reflect expectations for short-term rates set by the Federal Reserve. In stressful times like 2022 the ebbs and flows of the markets anxiety is reflecting in the rates. Growth concerns are reflected across the curve. Meanwhile, the average rate on a 30-year fixed-rate mortgage fell to 5.70%, mortgage-finance giant Freddie Mac said Thursday. That is down from 5.81% last week but up from 3.22% at the beginning of 2022.

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