Bond Market Update

Losses Widened

• U.S. Treasuries trade near their lows after an extension of their opening losses. The trading day started in negative territory with the market adding to its losses shortly after the start. The pressure persisted through the recent release of today's batch of economic data, which showed improvements in the final S&P Global Manufacturing PMI for November (to 49.7 from 48.5) and the ISM Manufacturing PMI for November (48.4; Briefing.com consensus 47.6%; prior 46.5%). Shorter tenors led the market lower out of the gate, but the belly is now behind. The greenback has built on its early strength, helping the U.S. Dollar Index rise off a three-week low while equities are off to a higher start in the Nasdaq (+0.9%). The S&P 500 (+0.2%) trades closer to its flat line while the Dow (-0.4%) and Russell 2000 (-0.6%) display early losses.
• Yield Check:
  • 2-yr: +6 bps to 4.22%
  • 3-yr: +6 bps to 4.17%
  • 5-yr: +7 bps to 4.13%
  • 10-yr: +6 bps to 4.24%
  • 30-yr: +4 bps to 4.41%