Bond Market Update

Opening Losses Trimmed

• U.S. Treasuries continue trading mostly lower, though early action has seen a steady rise off opening lows. The Treasury complex notched lows about 30 minutes after the open before seeing a steady bid that was assisted by the release of a below-consensus ADP Employment Change report for November (146,000; Briefing.com consensus 170,000) and strengthened after the recent release of two economic reports, headlined by the ISM Non-Manufacturing Index for November (52.1%; Briefing.com consensus 55.5%; prior 56.0%). The Index indicated ongoing expansion in the services sector, but at a markedly slower pace than in October. This contrasted with the earlier release of the final November S&P Global U.S. Services PMI (56.1; prior 55.0), which showed an acceleration relative to October. The ongoing bid has returned the 2-yr note to little changed for the day while longer tenors remain modestly lower for the day. Equities are off to a higher start with the Nasdaq (+0.8%) leading the S&P 500 (+0.3%).
• Yield Check:
  • 2-yr: UNCH at 4.17%
  • 3-yr: UNCH at 4.13%
  • 5-yr: UNCH at 4.11%
  • 10-yr: +1 bp to 4.23%
  • 30-yr: +1 bp to 4.41%