Bond Market Update

Defending Early Gains

• Longer-dated U.S. Treasuries continue hovering near their opening levels while shorter tenors have slipped from their highs in recent trade. Treasuries climbed off their starting levels after today's early batch of data showed a deceleration in private payroll growth in August. However, the market backed down from highs after the just-released ISM Services Index for August (51.5%; Briefing.com consensus 51.0%) beat expectations, showing an acceleration in growth. Equities are looking to recover from a poor start to the week with the Nasdaq (+0.7%) trading ahead of the S&P 500 (+0.1%).
• Yield Check:
  • 2-yr: -2 bps to 3.75%
  • 3-yr: -3 bps to 3.61%
  • 5-yr: -3 bps to 3.54%
  • 10-yr: -3 bps to 3.74%
  • 30-yr: -2 bps to 4.05%