Bond Market Update

Weak ADP Employment Report Offers Boost

• U.S. Treasuries trade on their highs after rallying in immediate reaction to the September ADP Employment Change report, which not only showed that payrolls in September decreased by 32,000 against expectations for growth (Briefing.com consensus 40,000), but it also included a sharp downward revision to the reading from August (to -3,000 from 54,000). Shorter tenors have been at the forefront of the post-data buying, sending the 2-yr yield to a one-week low while the 30-yr yield is revisiting yesterday's low. Equities started the day in the red with the S&P 500 (-0.4%) narrowing this week's gain to 0.3%.
• Yield Check:
  • 2-yr: -6 bps to 3.54%
  • 3-yr: -6 bps to 3.55%
  • 5-yr: -7 bps to 3.67%
  • 10-yr: -6 bps to 4.09%
  • 30-yr: -4 bps to 4.69%