Bond Market Update

Pressure Returns

• U.S. Treasuries trade on their lows after facing some early selling pressure, which has driven yields on the 10-yr note and shorter tenors to fresh highs for the month while the 30-yr yield is now within two basis points of its high from last week. Treasuries extended their initial losses after today's first batch of data showed stronger-than-expected Retail Sales for October (0.4%; Briefing.com consensus 0.3%) coupled with a sizable upward revision to the September reading (to 0.8% from 0.4%) and a significant improvement in the Empire State Manufacturing Survey for November (31.2; Briefing.com consensus 3.3; prior -11.9). The post-data selling lifted the 10-yr yield above its July high (4.493%) to a level not seen since the end of May before a recent bounce off lows.
• Yield Check:
  • 2-yr: +7 bps to 4.36%
  • 3-yr: +7 bps to 4.33%
  • 5-yr: +7 bps to 4.36%
  • 10-yr: +7 bps to 4.48%
  • 30-yr: +5 bps to 4.64%