Bond Market Update

Opening Losses Widened

• U.S. Treasuries trade on their lows after adding to their initial losses. Treasuries spent the first hour of action in a sideways range near their starting levels, slipping to fresh lows after today's economic data showed a downtick in the flash S&P Global U.S. Manufacturing PMI (48.0; prior 49.6) and an acceleration in the Services PMI reading (55.2; prior 55.0). These reports preceded the release of a stronger-than-expected Existing Home Sales report for July (3.95 mln; Briefing.com consensus 3.90 mln). The early selling has returned yields on 10s and 30s to their opening levels from Monday while yields on shorter tenors remain a bit below levels from three days ago.
• Yield Check:
  • 2-yr: +7 bps to 3.99%
  • 3-yr: +7 bps to 3.80%
  • 5-yr: +7 bps to 3.71%
  • 10-yr: +7 bps to 3.85%
  • 30-yr: +7 bps to 4.12%