Bond Market Update

Sitting Near Lows

• U.S. Treasuries trade in the red with yields on the 5-yr note and shorter tenors sitting at fresh highs for the month while the 10-yr yield and the 30-yr yield hover below their October highs. The market faced some pressure after today's batch of data showed a stubborn core PCE Price Index (2.7% yr/yr), a solid jobless claims report, and an unexpected moderation in the Employment Cost Index for Q3 (0.8%; Briefing.com consensus 1.0%; prior 0.9%). Treasuries slid to lows even though the Chicago PMI for October (41.6; Briefing.com consensus 47.5; prior 46.6) showed an unexpected deepening in the pace of contraction, but the past 30 minutes have seen a rebound paced by longer tenors. Equities are off to a weak start with the Nasdaq (-2.0%) leading the market lower.
• Yield Check:
  • 2-yr: +5 bps to 4.20%
  • 3-yr: +5 bps to 4.17%
  • 5-yr: +6 bps to 4.19%
  • 10-yr: +5 bps to 4.31%
  • 30-yr: +2 bps to 4.50%