Bond Market Update

Narrow Range in Early Trade

• U.S. Treasuries are off to a quiet start, having spent the first two hours of action in a sideways range near yesterday's closing levels. The Treasury market has not seen much early movement while equities are off to a higher start thanks to leadership from large tech names after President Trump announced a $500 bln AI infrastructure fund yesterday. Today's economic news has been on the light side with the Conference Board releasing its December Leading Economic Index for the U.S. (-0.1%; Briefing.com consensus 0.0%; prior 0.4%), which followed an early-morning release of the weekly MBA Mortgage Index (0.1%; prior 33.3%) that showed virtually no change in activity.
• Yield Check:
  • 2-yr: -1 bp to 4.27%
  • 3-yr: -1 bp to 4.32%
  • 5-yr: UNCH at 4.40%
  • 10-yr: UNCH at 4.57%
  • 30-yr: -1 bp to 4.79%