Bonds caught a tailwind as oil prices cooled and global borrowing costs eased, which lifted risk appetite and stocks even with fighting in the Middle East still ongoing. After last week's climb to 5.041% - a 19-year high - the 10-year note was down by just over 3 basis points, landing at 4.957%. The 2-year yield edged down a little over 2 basis points to 4.718%, while the 30-year eased by more than 3 basis points to 5.293%.
One basis point equals 0.01%, and when bond prices go up, yields go down.
Here's where the screens landed: U.S. 10 Year Treasury at 4.959% with a -0.037 move; U.S. 1 Month at 3.887% down by 0.003; U.S. 1 Year at 4.413% unchanged. The U.S. 2 Year printed 4.729%, off 0.014; the U.S. 30 Year at 5.297%, down 0.03. Short bills ticked higher, with the U.S. 3 Month at 4.09% up 0.008 and the U.S. 6 Month at 4.274% up 0.002.
Across the Atlantic, benchmark borrowing costs eased, with Germany's 10-year bund and the U.K.'s 10-year gilt each down by 5 basis points. Japan, often a bellwether for global flows, was closed Monday.
Investors are still absorbing last week's quarter-point rate increase from the Federal Reserve and weighing the odds of additional moves before year end. The European Central Bank also lifted rates in the euro area this month, while the Bank of England held steady at its meeting last week.
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Diplomacy moves to center stage with global leaders convening at the United Nations General Assembly, and Washington is turning up the heat on Tehran to reach a deal aimed at freeing up trade flows via the Strait of Hormuz. On the data front, S&P Global's Purchasing Managers' Index hits Wednesday and Initial Jobless Claims arrive Thursday. Markets will also tune in to remarks from New York Fed President John Williams, Richmond Fed President Tom Barkin and other central bankers.
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