Bond Market Update

Boosted by Weak Payrolls

• U.S. Treasuries are adding to their starting gains after the jobs report for July did little to quell the market's sudden concerns about economic growth. The July jobs report disappointed in several ways, as nonfarm payrolls increased by 114,000 (Briefing.com consensus 170,000), there was a downward revision to June's growth (to 179,000 from 206,000), and the Unemployment Rate rose to 4.3% against expectations for no change. The post-data rally has sent yields on the 7-yr note and shorter tenors to fresh lows for the year while the 10-yr yield is on the verge of doing the same.
• Yield Check:
  • 2-yr: -28 bps to 3.88%
  • 3-yr: -28 bps to 3.69%
  • 5-yr: -24 bps to 3.61%
  • 10-yr: -18 bps to 3.80%
  • 30-yr: -12 bps to 4.15%