Bond Market Update

Opening Gains Narrowed

• U.S. Treasuries have backed down from their initial highs, though all tenors continue holding gains. Treasuries followed their higher start with a bit more strength after the release of a below-consensus Housing Starts (1.311 mln; Briefing.com consensus 1.340 mln) and Building Permits (1.416 mln; Briefing.com consensus 1.441 mln) report for October, but the market found some resistance once yields dropped below their lows from last week. The past hour has seen some backtracking, which has lifted yields just above their opening levels from this morning. Geopolitical concerns are percolating in the background after tough rhetoric from Russia in response to the first Ukrainian strike on Russian territory using U.S. missiles. Equities are feeling some early pressure with the S&P 500 (-0.5%) giving back its gain from yesterday.
• Yield Check:
  • 2-yr: -2 bps to 4.26%
  • 3-yr: -3 bps to 4.22%
  • 5-yr: -4 bps to 4.24%
  • 10-yr: -4 bps to 4.38%
  • 30-yr: -4 bps to 4.57%