Bond Market Update

Longer Tenors Ahead

• U.S. Treasuries hover near their lows after reversing from their best levels of the morning. Treasuries started the day with slight gains that were extended during the first hour of action. However, the market reversed from highs after the recent release of the Consumer Confidence report for July (actual 100.3; Briefing.com consensus 99.8; prior 97.8), which beat expectations. The report was released alongside the latest JOLTS survey, which showed that job openings decreased to 8.184 mln in June from a revised 8.230 mln (from 8.140 mln) in May. Equities are off to a higher start with the S&P 500 (+0.2%) trailing the Russell 2000 (+0.9%).
• Yield Check:
  • 2-yr: UNCH at 4.39%
  • 3-yr: UNCH at 4.20%
  • 5-yr: UNCH at 4.07%
  • 10-yr: -1 bp to 4.17%
  • 30-yr: -2 bps to 4.42%