Bond Market Update

Early Losses Widened

• U.S. Treasuries hover just above their lows after adding to their initial losses. The market has faced steady pressure since the cash start with some of the selling following the release of the ADP Employment Change report for September (143,000; Briefing.com consensus 120,000), which was better than expected. Longer tenors paced the early selling and they remain behind while the 2-yr note outperforms, though it too trades in the red. Equities are off to a slightly lower start with the S&P 500 (-0.2%) holding a slim loss.
• Yield Check:
  • 2-yr: +2 bps to 3.64%
  • 3-yr: +4 bps to 3.56%
  • 5-yr: +4 bps to 3.56%
  • 10-yr: +6 bps to 3.80%
  • 30-yr: +7 bps to 4.15%