Bond Market Update

Long Bond Leads

• U.S. Treasuries continue holding slim gains with the long bond sitting just above its opening mark while the 5-yr note and shorter tenors hover a bit below their starting levels. The market faced some light pressure after the ISM Services Index for August showed accelerating growth, which made for a welcome improvement from a recent string of underwhelming economic indicators. The post-ISM pullback briefly pressured the Treasury complex into the red, but that's where the market found support with the long bond leading the return toward best levels of the day. Equities, meanwhile, are seeing a continuation of their poor start to the week with the S&P 500 (-0.5%) now down 2.7% since Friday.
• Yield Check:
  • 2-yr: -2 bps to 3.75%
  • 3-yr: -2 bps to 3.62%
  • 5-yr: -2 bps to 3.54%
  • 10-yr: -3 bps to 3.74%
  • 30-yr: -4 bps to 4.03%