Bond Market Update

Defending Gains

• U.S. Treasuries trade just below their best levels of the session after spending the past four hours in a sideways range. The market hit session highs shortly after the release of the July PPI report and it has navigated a narrow range since then. Shorter tenors remain ahead, though yields on all tenors are now back at levels seen a week ago. The market will be eager to see if tomorrow's CPI (Briefing.com consensus 0.2%; prior -0.1%) and Core CPI (Briefing.com consensus 0.2%; prior 0.1%) report for July shows the same disinflationary trend seen in the PPI report. Equities have continued building on their gains with the Nasdaq (+2.2%) remaining ahead of the S&P 500 (+1.5%).
• Yield Check:
  • 2-yr: -7 bps to 3.95%
  • 3-yr: -6 bps to 3.77%
  • 5-yr: -6 bps to 3.69%
  • 10-yr: -5 bps to 3.86%
  • 30-yr: -4 bps to 4.16%