Bond Market Update

Rebound Extended

• U.S. Treasuries have continued their rise off morning lows with the 10-yr note turning positive in recent trade while the long bond remains slightly lower for the day. The market began bouncing immediately after the sharply lower start which lifted the 30-yr yield to a fresh high for the month. The recovery has taken place alongside a rebound in stocks after their poor showing at the end of last week. Economic data released this morning was limited to the NAHB Housing Market Index for November (46; Briefing.com consensus 43), which beat expectations, preceding tomorrow's release of Housing Starts (Briefing.com consensus 1.340 mln; prior 1.354 mln) and Building Permits (Briefing.com consensus 1.441 mln; prior 1.428 mln) for October at 8:30 ET.
• Yield Check:
  • 2-yr: UNCH at 4.30%
  • 3-yr: -1 bp to 4.26%
  • 5-yr: -1 bp to 4.29%
  • 10-yr: UNCH at 4.42%
  • 30-yr: +1 bp to 4.61%