Bond Market Update

Opening Gains Maintained

• U.S. Treasuries remain in positive territory, but they have slipped from their opening highs. Treasuries marked their best levels of the morning immediately after the open, followed by a pullback in response to the release of a stronger-than-expected advance reading of Q2 GDP (2.8%; Briefing.com consensus 1.9%). The post-data selling briefly sent the 2-yr note into the red, but the entire complex bounced steadily over the past 30 minutes as equities slumped out of the gate.
• Yield Check:
  • 2-yr: -3 bps to 4.39%
  • 3-yr: -4 bps to 4.21%
  • 5-yr: -6 bps to 4.10%
  • 10-yr: -7 bps to 4.22%
  • 30-yr: -8 bps to 4.47%