Bond Market Update

Narrow Range

• Narrow trading ranges have persisted throughout today's trading with the participant ranks thinning out ahead of the New Year's holiday, which has officially started in places like Australia.
• The stock market is mixed and is open for a full day of trading. The Treasury market will have an early close at 2:00 p.m. ET today, but will make up for the extra play time and then some on January 9 when stocks will be closed in a National Day of Mourning for President Carter. The Treasury market will be open January 9, but will have an early close at 2:00 p.m. ET.
• The U.S. Dollar Index, up a hefty 7.0% this year, has increased 0.2% today to 108.37, benefiting largely at the expense of a weaker euro. EUR/USD -0.5% to 1.0356.
• Yield check:
  • 2-yr: -2 bps to 4.23%
  • 3-yr: -2 bps to 4.26%
  • 5-yr: -1 bp to 4.36%
  • 10-yr: -1 bp to 4.54%
  • 30-yr: -1 bp to 4.75%