Bond Market Update

Staying Near Lows

• U.S. Treasuries remain just above lows that were reached in immediate reaction to the 10:00 ET release of the ISM Non-Manufacturing Index for September (54.9%; Briefing.com consensus 51.6%). The belly of the cure led the market lower out of the gate, but the entire complex nestled into a sideways range near the day's lows. Meanwhile, action on the equity side has been sloppy with the S&P 500 (-0.5%) recently falling to a fresh low after a couple failed attempts at overcoming its soft start. Crude oil has been among today's biggest movers, jumping $3.50, or 4.9%, to $73.60/bbl amid concerns that the Biden administration could support Israeli strikes on Iranian oil facilities.
• Yield Check:
  • 2-yr: +5 bps to 3.69%
  • 3-yr: +5 bps to 3.60%
  • 5-yr: +5 bps to 3.61%
  • 10-yr: +4 bps to 3.83%
  • 30-yr: +2 bps to 4.16%