Bond Market Update

Early Losses Maintained

• U.S. Treasuries have added to their early losses with the belly of the curve remaining slightly behind. Treasuries slipped out of the gate, inching below their opening levels during the first hour of trade. The market slumped to fresh lows after the recently-released ISM Non-Manufacturing Index for September (54.9%; Briefing.com consensus 51.6%) showed a bigger than expected acceleration in activity in the services sector. However, the post-data slip to lows was followed by an immediate bounce toward levels seen before the report crossed the wires. Equities are off to a soft start, but they are fighting back with the S&P 500 now down just 0.1%.
• Yield Check:
  • 2-yr: +4 bps to 3.68%
  • 3-yr: +5 bps to 3.60%
  • 5-yr: +5 bps to 3.61%
  • 10-yr: +4 bps to 3.83%
  • 30-yr: +3 bps to 4.16%