Bond Market Update

Yields Slip Past August Lows

• U.S. Treasuries are adding to their early gains after the August jobs report showed below-consensus payroll growth (142,000; Briefing.com consensus 165,000) coupled with a sizable downward revision to last month's total (to 89,000 from 114,000). Meanwhile, average hourly earnings (0.4%; Briefing.com consensus 0.3%) grew more than expected but July's 0.2% increase was revised down to a 0.1% decrease. The post-data rally has pressured yields past their August lows with the 10-yr yield hitting a 15-month low.
• Yield Check:
  • 2-yr: -10 bps to 3.65%
  • 3-yr: -10 bps to 3.52%
  • 5-yr: -6 bps to 3.48%
  • 10-yr: -5 bps to 3.68%
  • 30-yr: -4 bps to 3.98%