Bond Market Update

Gains Narrowed

• U.S. Treasuries have dipped from their morning highs after today's second batch of economic data, which included stronger-than-expected Personal Income (0.6%; Briefing.com consensus 0.3%) and Personal Spending (0.4%; Briefing.com consensus 0.2%) for October, coupled with an upward revision to September's Personal Spending report (to 0.6% from 0.5%). The Core PCE Price Index was up an in-line 0.3%, which lifted the yr/yr growth rate to 2.8% from 2.7%, which explains the pressure on Treasuries. In addition, the market received the Pending Home Sales report (2.0%; Briefing.com consensus -1.5%) for October, which showed an unexpected increase.
• Yield Check:
  • 2-yr: -2 bps to 4.23%
  • 3-yr: -4 bps to 4.18%
  • 5-yr: -5 bps to 4.14%
  • 10-yr: -3 bps to 4.27%
  • 30-yr: -3 bps to 4.45%