Bond Market Update

Last Week's Highs in Sight

• U.S. Treasuries trade near their highs after a steady rise off their opening levels. The trading day began with slight losses in most tenors, but the entire complex began rising after the cash start, continuing the rally for the next 90 minutes. The advance has taken place alongside a weak open in stocks, and it has pressured yields past their opening levels from Friday with yields on shorter tenors approaching their lows from last week. The advance has also received support from today's economic data, which included a dip in the final reading of the S&P Global U.S. Manufacturing PMI for August (to 47.9 from 48.0) and a below-consensus ISM Manufacturing Index (47.2%; Briefing.com consensus 47.5%). In addition, the Construction Spending report for July (-0.3%; Briefing.com consensus 0.2%) also missed expectations.
• Yield Check:
  • 2-yr: -8 bps to 3.85%
  • 3-yr: -8 bps to 3.71%
  • 5-yr: -8 bps to 3.64%
  • 10-yr: -8 bps to 3.83%
  • 30-yr: -7 bps to 4.13%