Bond Market Update

Early Losses Widened

• U.S. Treasuries trade on their lows after adding to their opening losses. The market dipped out of the gate with 5s and 10s showing some relative weakness, though all tenors have slipped past their starting levels. Treasuries reached lows during the past few minutes, just as the market received the Existing Home Sales report for September (3.84 mln; Briefing.com consensus 3.90 mln), which missed expectations, but included an upward revision to the August reading (to 3.88 mln from 3.86 mln). The ongoing pressure on Treasuries is leading to some profit taking in equities with the Nasdaq (-0.9%) trading behind the S&P 500 (-0.5%).
• Yield Check:
  • 2-yr: +1 bp to 4.05%
  • 3-yr: +4 bps to 4.02%
  • 5-yr: +5 bps to 4.05%
  • 10-yr: +4 bps to 4.25%
  • 30-yr: +3 bps to 4.53%