Bond Market Update

Sitting Near Highs

• U.S. Treasuries trade just below their highs with shorter tenors showing some relative strength. Treasuries began the day just above their unchanged levels, quickly extending their gains in reaction to the PPI report for July, which showed a cooler-than-expected core reading (0.0%; Briefing.com consensus 0.2%) that caused the yr/yr growth rate to decelerate to 2.4% from 3.0% in June. Equities are off to a higher start with the Nasdaq (+1.4%) showing relative strength over the S&P 500 (+0.8%).
• Yield Check:
  • 2-yr: -5 bps to 3.97%
  • 3-yr: -5 bps to 3.78%
  • 5-yr: -5 bps to 3.70%
  • 10-yr: -4 bps to 3.87%
  • 30-yr: -3 bps to 4.17%