Bond Market Update

Shorter Tenors Maintain Early Lead

• U.S. Treasuries remain mixed after a muted reaction to the release of the PPI report for September, which included a cooler-than-expected headline reading (0.0%; Briefing.com consensus 0.1%) and an in-line core reading (0.2%). The market essentially held its early ground in reaction to the report with Treasuries maintaining their sideways range through the recent release of a preliminary reading of the University of Michigan's Consumer Sentiment survey for October, which was weaker than expected (68.9; Briefing.com consensus 70.1). Equities started the day on a higher note with the S&P 500 (+0.7%) trading ahead of the Nasdaq (+0.4%).
• Yield Check:
  • 2-yr: -3 bps to 3.97%
  • 3-yr: -2 bps to 3.89%
  • 5-yr: -1 bp to 3.91%
  • 10-yr: UNCH at 4.10%
  • 30-yr: +2 bps to 4.40%