Bond Market Update

Early Losses Widened

• U.S. Treasuries trade on their lows after adding to their initial losses. Treasuries slipped out of the gate, staying near their opening levels after the release of a stronger-than-expected Housing Starts and Building Permits report for August. The market made a brief attempt at a bounce, but found resistance just above today's starting levels, which invited a slip to fresh lows. Even with today's dip, yields remain just above their lowest levels of the year heading into the afternoon release of the September FOMC Statement. Equities are off to a quiet start with the S&P 500 (-0.1%) holding a slim loss while the Nasdaq (unch) outperforms by a slight margin.
• Yield Check:
  • 2-yr: +6 bps to 3.65%
  • 3-yr: +6 bps to 3.51%
  • 5-yr: +5 bps to 3.49%
  • 10-yr: +5 bps to 3.69%
  • 30-yr: +5 bps to 4.00%