Bond Market Update

Finding Resistance Again

• U.S. Treasuries have backpedaled from their opening highs with the 2-yr note turning negative while longer tenors are hanging onto some of their starting gains. Treasuries began slipping away from their starting levels shortly after the cash start, deepening their pullback after the flash reading of the S&P Global Services PMI for November (57.0; prior 55.0) showed an acceleration in activity in the largest sector of the U.S. economy to a level not seen since early 2022. Meanwhile, flash S&P Global Manufacturing PMI (48.8; prior 48.5) showed a slight deceleration in the pace of contraction in the manufacturing sector. Treasuries climbed off their intraday lows after the just-released final reading of the University of Michigan Consumer Sentiment survey for November (71.8; Briefing.com consensus 73.0; prior 73.0) missed expectations, but that post-data uptick was reversed in short order.
• Yield Check:
  • 2-yr: +1 bp to 4.36%
  • 3-yr: UNCH at 4.30%
  • 5-yr: UNCH at 4.30%
  • 10-yr: -1 bp to 4.42%
  • 30-yr: -2 bps to 4.60%