Bond Market Update

Pinned to Lows

• Recent action saw the long bond inch to a fresh low for the day while shorter tenors are staying just above their lowest levels of the day. Despite the scope of today's losses, nearly all the action took place at the open, followed by some light additional selling during the cash session, which did not feature any economic data. The Consumer Confidence report for August (Briefing.com consensus $12.7 bln; prior $25.5 bln) will be released at 15:00 ET and the economic data flow will pick up as the week goes on with September CPI (Brieifng.com consensus 0.1%) expected on Thursday morning, followed by September PPI (Briefing.com consensus 0.1%) on Friday.
• Yield Check:
  • 2-yr: +6 bps to 3.99%
  • 3-yr: +6 bps to 3.90%
  • 5-yr: +5 bps to 3.87%
  • 10-yr: +5 bps to 4.03%
  • 30-yr: +4 bps to 4.30%