Bond Market Update

Long End Ahead

• U.S. Treasuries trade on their highs after rising off their opening levels. Treasuries started the day with modest losses in shorter tenors while the long bond displayed early strength, but the entire complex has seen buying during the first two hours of today's session. Economic data released this morning showed a smaller-than-expected ADP employment growth (actual 150,000; Briefing.com consensus 163,000) and a larger-than-expected increase in weekly jobless claims (to 238,000 from 233,000; Briefing.com consensus 235,000) while the just-released final reading of the S&P Global U.S. Services PMI for June increased to 55.3 from 55.1 in the flash reading. Equities are off to a modestly higher start with the S&P 500 (+0.1%) extending this week's gain to 1.0% ahead of its early close at 13:00 ET.
• Yield Check:
  • 2-yr: UNCH at 4.74%
  • 3-yr: -1 bp to 4.54%
  • 5-yr: -3 bps to 4.37%
  • 10-yr: -3 bps to 4.40%
  • 30-yr: -4 bps to 4.57%