Bond Market Update

Early Gains Narrowed

• U.S. Treasuries have dipped from their starting levels, though they remain in positive territory at this juncture. Treasuries opened the session on highs before facing selling pressure that briefly tipped the long bond into negative territory about 90 minutes after the start. The pullback from highs has been assisted by the release of a better-than-expected weekly jobless claims report (227,000; Briefing.com consensus 246,000) and an above-consensus New Homes Sales report for September (738,000; Briefing.com consensus 713,000). Equities are off to a mixed start with the S&P 500 (+0.2%) holding a modest early gain while the Dow (-0.3%) lags.
• Yield Check:
  • 2-yr: -3 bps to 4.06%
  • 3-yr: -3 bps to 4.01%
  • 5-yr: -2 bps to 4.04%
  • 10-yr: -1 bp to 4.24%
  • 30-yr: UNCH at 4.51%