Bond Market Update

Early Weakness Persists

• Longer-dated U.S. Treasuries continue hovering near their opening levels while shorter tenors have widened their losses, reaching fresh lows in recent action. Treasuries made a brief attempt at a bounce near the end of the initial hour of trade, but that move was rebuffed, resulting in fresh lows up front. The market has shown a limited immediate reaction to the Consumer Confidence report for December (104.7; Briefing.com consensus 113.5), which missed estimates, and a New Home Sales report for November (664,000; Briefing.com consensus 670,000), which was also shy of expectations. The lower start in Treasuries comes alongside a mixed start in equities, where the Nasdaq (+0.3%) holds a modest early gain while the Dow (-0.6%) lags, leaving the S&P 500 (unch) near its flat line.
• Yield Check:
  • 2-yr: +3 bps to 4.34%
  • 3-yr: +3 bps to 4.35%
  • 5-yr: +3 bps to 4.41%
  • 10-yr: +3 bps to 4.55%
  • 30-yr: +3 bps to 4.74%