Bond Market Update

Opening Range Maintained

• U.S. Treasuries are back near their starting levels after enduring some early bumpiness. Treasuries slipped out of the gate with shorter tenors leading the move. The market dipped to fresh lows after the release of stronger than expected Housing Starts (1.353 mln; Briefing.com consensus 1.310 mln; prior 1.314 mln) and Building Permits (1.446 mln; Briefing.com consensus 1.391 mln; prior 1.399 mln) for June. However, the market bounced swiftly, returning action to levels seen at the cash start. Equities are facing some early pressure with the technology sector (-3.1%) leading the S&P 500 (-1.0%) and Nasdaq (-2.0%) lower while the Dow (+0.3%) is showing a continuation of its recent display of relative strength.
• Yield Check:
  • 2-yr: +1 bp to 4.45%
  • 3-yr: +1 bp to 4.22%
  • 5-yr: +2 bps to 4.11%
  • 10-yr: +1 bp to 4.18%
  • 30-yr: +1 bp to 4.39%