Bond Market Update

Bounce Extended

• U.S. Treasuries have seen a continuation of their recovery off morning lows with all tenors now firmly in the green. The market reversed shortly after its lower start and has maintained an impressive bid over the past four hours. The advance was assisted by a weaker-than-expected ISM Non-Manufacturing Index for November (52.1%; Briefing.com consensus 55.5%; prior 56.0%), but Treasuries made considerable additional progress well after the report's release. The 10-yr yield hit 4.281% in morning trade, but is now down all the way to 4.188% with its 50-day moving average (4.179%) looming below. The 30-yr yield, meanwhile, started the day about three basis points above the 50-day moving average of its own (4.419%), but is now six basis points below that mark.
• Yield Check:
  • 2-yr: -5 bps to 4.12%
  • 3-yr: -5 bps to 4.08%
  • 5-yr: -4 bps to 4.07%
  • 10-yr: -3 bps to 4.19%
  • 30-yr: -3 bps to 4.36%