Bond Market Update

Opening Losses Reversed

• U.S. Treasuries of most tenors trade just below their highs that were reached in immediate reaction to the Personal Income/Outlays report for May, which showed a combination of above-consensus income growth (actual 0.5%; Briefing.com consensus 0.4%), below-consensus spending growth (actual 0.2%; Briefing.com consensus 0.3%), and a deceleration in the core PCE price index to 2.6% yr/yr from 2.8%. The post-data advance lifted Treasuries into positive territory with most tenors remaining on their highs while the long bond has dipped from its best level. Equities are off to a higher start with the S&P 500 (+0.5%) on track to gain 4.4% for the month and 4.9% for the quarter.
• Yield Check:
  • 2-yr: -5 bps to 4.67%
  • 3-yr: -6 bps to 4.44%
  • 5-yr: -4 bps to 4.26%
  • 10-yr: -2 bps to 4.27%
  • 30-yr: UNCH at 4.43%