Bond Market Update

Auction Looms

• U.S. Treasuries have added to their opening losses, though like yesterday, the selling has happened at a very slow pace. Treasuries began adding to their initial losses shortly after the open with longer tenors showing relative weakness. The market did not receive any economic data this morning, and trading volume is on the light side given the looming Christmas closure and today's early closure. That said, the U.S. Treasury will hold a $70 bln 5-yr note auction in just under 90 minutes, followed by a $44 bln 7-yr note sale on Thursday.
• Yield Check:
  • 2-yr: UNCH at 4.35%
  • 3-yr: +1 bp to 4.38%
  • 5-yr: +2 bps to 4.47%
  • 10-yr: +2 bps to 4.62%
  • 30-yr: +3 bps to 4.81%