Bond Market Update

Buyers absent

• The Conference Board's Leading Economic Index declined 0.5% in September (Briefing.com consensus -0.3%), with factory orders remaining a major drag, following a downwardly revised 0.3% decline (from -0.2%) in August.
• Not much buying interest to be found in the Treasury market so far today. Most of today's losses were incurred in the overnight trade.
• The 2-yr note yield is finding some resistance at 4.00%, but remains elevated, having climbed roughly 40 basis points since the Fed cut the target range for the fed funds rate by 50 basis points on September 18. The 10-yr note yield for its part is up approximately 45 basis points since that cut.
• Gold prices, often viewed as an inflation hedge, continue to run to record levels. Gold future are up 0.8% to $2.752.10/ozt, and are up 6.2% since the September 18 rate cut.
• Yield check:
  • 2-yr: +5 bps to 4.00%
  • 3-yr: +6 bps to 3.92%
  • 5-yr: +6 bps to 3.94%
  • 10-yr: +8 bps to 4.15%
  • 30-yr: +7 bps to 4.45%