Bond Market Update

Short End Slips Behind

• U.S. Treasuries sit near their lows after slipping from their opening highs. The Treasury complex notched session highs at the open, followed by a reversal to lows after the market received today's first batch of data, which included an unrevised reading of Q2 GDP (3.0%), a decrease in weekly jobless claims to 218,000 from 222,000 and better-than-expected Durable Orders reading for August (0.0%; Briefing.com consensus -2.9%). The early selling has been paced by shorter tenors, making for a change from the recent dynamic that saw relative strength up front. Equities are off to a higher start with the S&P 500 (+0.6%) trailing the Nasdaq (+1.0%).
• Yield Check:
  • 2-yr: +6 bps to 3.61%
  • 3-yr: +4 bps to 3.53%
  • 5-yr: +4 bps to 3.56%
  • 10-yr: +2 bps to 3.80%
  • 30-yr: UNCH at 4.14%