Bond Market Update

Defending Gains

• U.S. Treasuries trade a bit above intraday lows that were set just before 11:00 ET. The entire complex pulled back from opening highs during the first three hours of action with shorter tenors leading the way, but recent trade has seen some renewed buying, which is pressuring yields on longer tenors back toward their opening levels. However, the overall pace of early afternoon action has been very slow. The market did not receive any economic data today, but the U.S. Treasury will release its quarterly borrowing estimate just as the Treasury market closes for the day. Tomorrow's session will feature the 10:00 ET release of the Consumer Confidence report for July (Briefing.com consensus 99.8; prior 100.4), followed by the FOMC Decision on Wednesday, which is expected to set the stage for a September rate cut.
• Yield Check:
  • 2-yr: -1 bp to 4.38%
  • 3-yr: -1 bp to 4.19%
  • 5-yr: -2 bps to 4.06%
  • 10-yr: -3 bps to 4.17%
  • 30-yr: -3 bps to 4.43%