Bond Market Update

Running Into Resistance

• U.S. Treasuries are slipping from their opening levels after the release of a strong ADP Employment Change report for October (233,000; Briefing.com consensus 105,000), followed by the advance reading of Q3 GDP (2.8%; Briefing.com consensus 3.0%), which was cooler than expected. The early reversal is being paced by the short end, with the 2-yr note turning negative while the long bond remains in the green, though it too is facing some pressure.
• Yield Check:
  • 2-yr: +3 bps to 4.15%
  • 3-yr: +2 bps to 4.10%
  • 5-yr: +1 bp to 4.12%
  • 10-yr: UNCH at 4.27%
  • 30-yr: -2 bps to 4.50%