Bond Market Update

Sideways in Early Trade

• U.S. Treasuries continue trading near their flat lines with the long bond showing a modest loss while shorter tenors outperform, defending their opening gains. Treasuries saw some buying after the release of the Durable Orders report for September even though it showed a smaller than expected decrease (-0.8%; Briefing.com consensus -0.9%). However, the August reading was revised down to -0.8% from 0.0%. Treasuries reached highs just as equities opened on a solid note, and the past 45 minutes have seen some backtracking from best levels of the day with help from a stronger-than-expected final Consumer Sentiment survey for October from the University of Michigan (70.5; Briefing.com consensus 68.9).
• Yield Check:
  • 2-yr: -2 bps to 4.05%
  • 3-yr: -2 bps to 3.99%
  • 5-yr: -1 bp to 4.01%
  • 10-yr: UNCH at 4.20%
  • 30-yr: UNCH at 4.47%