Bond Market Update

Losses Widened

• U.S. Treasuries remain in the red, sitting just above session lows that were set during the past hour. The market has faced steady pressure since the opening hour, though the selling has unfolded at a measured pace. The New York Fed released its November Survey of Consumer Expectations in the late morning, showing ten-basis point upticks in inflation expectations for the year ahead (3.0%), three years ahead (2.6%), and five years ahead (2.9%). That said, the survey also showed that expectations for a better financial situation a year from now have risen to a level not seen since February 2020. In equities, the S&P 500 (-0.5%) continues holding a loss that has the index back at its low from Wednesday.
• Yield Check:
  • 2-yr: +3 bps to 4.13%
  • 3-yr: +3 bps to 4.09%
  • 5-yr: +4 bps to 4.07%
  • 10-yr: +5 bps to 4.20%
  • 30-yr: +6 bps to 4.39%