Bond Market Update

Longer Tenors Resist Pressure

• Longer-dated Treasuries continue holding modest gains while shorter tenors have slid to lows in reaction to the Retail Sales report for June (actual 0.0%; Briefing.com consensus -0.1%), which was ahead of expectations. Treasuries lurched off their highs in immediate reaction to the report, but the 5-yr note and longer tenors remain in the green while the 2-yr note is now down modestly. Equities started the day on a higher note before finding some resistance that has returned the Nasdaq to unchanged while the S&P 500 (+0.3%) outperforms by a slim margin.
• Yield Check:
  • 2-yr: +2 bps to 4.47%
  • 3-yr: +1 bp to 4.24%
  • 5-yr: UNCH at 4.13%
  • 10-yr: -2 bps to 4.21%
  • 30-yr: -4 bps to 4.42%