Bond Market Update

Tracking Lower

• Yields have continued to track lower in a steady manner. Buying efforts have been helped by sliding commodity prices and a disappointing headline print for the October New York Fed Empire State Manufacturing Survey.
• The October New York Fed Empire State Manufacturing Survey checked in at -11.9 (Briefing.com consensus 2.0) following an 11.5 reading for September. The October decline was paced by a drop in new orders (to -10.2 from 9.4). The dividing line between expansion and contraction is 0.0. An offset to the disappointing headline print was the uptick in the indexes for number of new employees (to 4.1 from -5.7) and the average employee workweek (to 4.7 from 2.9).
• Stocks have started today's session in a mixed manner. Dow component UnitedHealth Group (UNH 549.61, -55.79, -9.2%) is a major drag following its third quarter earnings report. Although the company's earnings were better-than-expected, investors were not impressed with a medical care ratio that increased from the prior year and a tepid FY25 earnings outlook.
• Yield check:
  • 2-yr: -1 bp to 3.93%
  • 3-yr: -2 bps to 3.84%
  • 5-yr: -2 bps to 3.86%
  • 10-yr: -2 bps to 4.05%
  • 30-yr: -3 bps to 4.35%