Bond Market Update

Resisting Early Pressure

• U.S. Treasuries have had a decent start to the Thursday session, putting up a fight after facing some pressure in immediate reaction to the PPI report for October, which matched expectations, but also included an upward revision to the reading from September (to 0.1% from 0.0%). Shorter tenors were at the forefront of the post-PPI dip, but they quickly bounced, turning positive. The long bond showed relative strength at the start, and it remains ahead, while equities are seeing some light early pressure with the S&P 500 (-0.2%) hovering just below its flat line.
• Yield Check:
  • 2-yr: -2 bps to 4.26%
  • 3-yr: -2 bps to 4.24%
  • 5-yr: -2 bps to 4.29%
  • 10-yr: -3 bps to 4.42%
  • 30-yr: -5 bps to 4.59%