Bond Market Update

Early Losses Widened

• U.S. Treasuries trade on their lows after a steady retreat from their starting levels. Treasuries attempted to recover their slim opening gains during the first few minutes of action, but they quickly found resistance, heading lower. Longer tenors underperformed from the start, and they remain behind, with the entire complex hitting fresh lows after today's second batch of data, even though it included below-consensus New Home Sales for October (610,000; Briefing.com consensus 718,000) and a disappointing Consumer Confidence report for November (111.7; Briefing.com consensus 113.0). Equities are off to a mixed start with the S&P 500 (+0.2%) holding a modest gain while the Dow (-0.6%) underperforms.
• Yield Check:
  • 2-yr: +2 bps to 4.29%
  • 3-yr: +4 bps to 4.25%
  • 5-yr: +5 bps to 4.22%
  • 10-yr: +6 bps to 4.32%
  • 30-yr: +6 bps to 4.50%