Bond Market Update

Opening Range Maintained

• U.S. Treasuries continue hovering near their starting levels with shorter tenors showing relative weakness while the long bond outperforms, holding a slim loss. The initial hour of action saw a slip past opening levels, but the market bounced quickly, returning to levels seen at the open during the next hour. The early resilience is keeping the 10-yr yield not far from its 50-day moving average (4.188%). Economic data released this morning was limited to an unexpected increase in weekly jobless claims (to 224,000 from 215,000; Briefing.com consensus 213,000) and a smaller-than-expected trade deficit for October (-$73.8 bln; Briefing.com consensus -$75.1 bln), but tomorrow's session will feature the release of the Employment Situation report for November (Briefing.com consensus 200,000; prior 12,000). Equities are off to a flat start with the Nasdaq looking to defend this week's 2.7% gain.
• Yield Check:
  • 2-yr: +5 bps to 4.17%
  • 3-yr: +4 bps to 4.12%
  • 5-yr: +4 bps to 4.10%
  • 10-yr: +3 bps to 4.21%
  • 30-yr: +1 bp to 4.36%