Bond Market Update

Opening Losses Recovered

• U.S. Treasuries trade just below highs that were reached in immediate reaction to the weaker-than-expected Retail Sales report for May (actual -0.1%; Briefing.com consensus 0.3%). Treasuries started the day with slim losses, but bounced right at 8:30 ET, pressuring yields below their starting levels from yesterday. Shorter tenors have been at the forefront of the bounce while the long bond has been more resistant to the move, though it too has climbed into positive territory. Equities started the day in mixed fashion with the S&P 500 (+0.2%) holding a slim gain while the Nasdaq (-0.1%) lags.
• Yield Check:
  • 2-yr: -4 bps to 4.72%
  • 3-yr: -5 bps to 4.45%
  • 5-yr: -4 bps to 4.26%
  • 10-yr: -3 bps to 4.25%
  • 30-yr: -2 bps to 4.39%