Bond Market Update

Early Gains Defended

• U.S. Treasuries have inched up off their opening levels, making for an encouraging start to an attempt at a bounce off levels last seen in the summer. The market followed its higher start with some light backtracking, but support was found in short order, allowing for a push to fresh highs. Longer tenors have been at the forefront of the early strength, though the short has narrowed some of its early underperformance gap. The market just received a disappointing Factory Orders report for September (-0.5%; Briefing.com consensus -0.4%), which showed a larger than expected decrease, combined with a downward revision to the reading from August (to -0.8% from -0.2%). Equities are off to a flat start with the S&P 500 sitting right on its unchanged level.
• Yield Check:
  • 2-yr: -6 bps to 4.14%
  • 3-yr: -8 bps to 4.10%
  • 5-yr: -8 bps to 4.13%
  • 10-yr: -9 bps to 4.28%
  • 30-yr: -9 bps to 4.47%