Bond Market Update

Longer Tenors Behind

• U.S. Treasuries hover just below their flat lines after a sideways start to the session. The Treasury complex started the session on a slightly lower note before rising to highs in immediate reaction to the PPI report for August, which showed an in-line headline reading (0.2%; Briefing.com consensus 0.2%) while core PPI was up 0.3% (Briefing.com consensus 0.2%). The report was coupled with downward revisions to readings from July, which was a welcome sight. Treasuries returned into negative territory over the past hour with the long bond trading slightly behind shorter tenors. Equities are off to a lower start with the S&P 500 down 0.2%.
• Yield Check:
  • 2-yr: UNCH at 3.65%
  • 3-yr: +1 bp to 3.48%
  • 5-yr: +2 bps to 3.46%
  • 10-yr: +2 bps to 3.67%
  • 30-yr: +3 bps to 3.99%