Bond Market Update

Opening Bounce Rebuffed

• U.S. Treasuries trade on their lows after a failed bounce attempt during the opening hour of action. Treasuries climbed off their starting levels, but found resistance once the long bond briefly turned positive 50 minutes into the cash session. The next hour saw a steady retreat, which has sent yields above their initial highs ahead of today's pair of Treasury note auctions, starting with a $69 bln 2-yr note sale at 11:30 ET, followed by a $70 bln 5-yr note offering at 13:00 ET. Equities are off to a higher start despite the early weakness in Treasuries with the Russell 2000 (+1.4%) showing notable strength while the Nasdaq (+0.7%) and S&P 500 (+0.5%) hold slimmer gains.
• Yield Check:
  • 2-yr: +2 bps to 4.12%
  • 3-yr: +2 bps to 4.06%
  • 5-yr: +3 bps to 4.08%
  • 10-yr: +3 bps to 4.26%
  • 30-yr: +2 bps to 4.52%