Bond Market Update

Fighting to Stay Positive

• U.S. Treasuries trade just below their highs after overcoming an early wave of selling pressure that followed the release of a stronger-than-expected ADP Employment Change report for October (233,000; Briefing.com consensus 105,000) and a deceleration in GDP growth during the third quarter (2.8%; Briefing.com consensus 3.0%). The post-data selling briefly returned the 10-yr note to little changed, where the market found support. Treasuries climbed steadily over the next hour, finding some resistance after the Pending Home Sales report for September (7.4%; Briefing.com consensus 2.5%) showed much stronger than expected growth. Equities are off to a higher start with the Russell 2000 (+0.6%) outperforming the big cap indices.
• Yield Check:
  • 2-yr: UNCH at 4.12%
  • 3-yr: -1 bp to 4.07%
  • 5-yr: -3 bps to 4.08%
  • 10-yr: -5 bps to 4.23%
  • 30-yr: -7 bps to 4.45%