Bond Market Update

Struggling with Resistance

• U.S. Treasuries remain in the red, though recent trade has seen a short-lived attempt at a bounce. Treasuries followed their lower start with an extension of their early losses, lifting yields ever closer to their highs from the start of July. The market bounced in immediate reaction to the recently-released pair of economic reports, but found resistance once the 5-yr note and longer tenors approached their closing levels from yesterday. The bounce attempt followed the release of an above-consensus Consumer Confidence report for October (108.7; Briefing.com consensus 99.0; prior 99.2) and a September Job Openings and Labor Turnover Survey (7.443 mln; prior revised to 7.861 from 8.040 mln), which showed a downward revision to the reading from August and another decrease in September that left the total at its lowest level since early 2021. Equities are off to a slightly higher start with the Nasdaq (+0.3%) leading the S&P 500 (+0.1%).
• Yield Check:
  • 2-yr: UNCH at 4.14%
  • 3-yr: +1 bp to 4.10%
  • 5-yr: +3 bps to 4.14%
  • 10-yr: +3 bps to 4.31%
  • 30-yr: +2 bps to 4.55%