Bond Market Update

Facing Early Pressure

• U.S. Treasuries trade on their lows after backpedaling from their opening levels. The 5-yr note and shorter tenors opened the day in positive territory, but immediately slipped from their starting levels, while longer tenors have underperformed from the start and they remain behind. The early weakness puts yields at their highest levels since August ahead of today's $58 bln 3-yr note auction at 13:00 ET, which will be followed by a 10-yr note sale tomorrow and a 30-yr bond auction on Thursday. Equities are off to a higher start with the S&P 500 (+0.5%) trailing the Nasdaq (+0.9%).
• Yield Check:
  • 2-yr: -2 bps to 3.98%
  • 3-yr: -1 bp to 3.89%
  • 5-yr: +1 bp to 3.87%
  • 10-yr: +2 bps to 4.05%
  • 30-yr: +3 bps to 4.33%