Bond Market Update

Staying Down

• U.S. Treasuries trade near their lows after starting the month with solid losses across the curve. Treasuries gapped lower at the open, extending to fresh lows during the next 40 minutes of action. The market briefly pushed above its opening levels after this morning's batch of data showed a below-consensus reading of the ISM Manufacturing Index for June (actual 48.5%; Briefing.com consensus 49.1%), which was released alongside a disappointing Construction Spending report for May (actual -0.1%; Briefing.com consensus 0.1%). Despite the soft data, Treasuries followed their rise above opening levels with a quick return toward early lows. Equities are off to a flat start with the S&P 500 (-0.1%) sitting just below its unchanged level.
• Yield Check:
  • 2-yr: +4 bps to 4.76%
  • 3-yr: +6 bps to 4.57%
  • 5-yr: +9 bps to 4.41%
  • 10-yr: +11 bps to 4.45%
  • 30-yr: +11 bps to 4.62%