Bond Market Update

Sideways Range in Midday Trade

• U.S. Treasuries trade just above their late-morning lows, having spent the better part of the past three hours in a sideways range. The trading day started with a steady retreat, but the market found support once yields on most tenors crept back to their morning highs from yesterday. Investors were supposed to receive the Employment Situation report for September this morning but the ongoing shutdown has delayed that release. The Senate is expected to hold another vote on a continuing resolution, but a successful passage appears unlikely. Barring a late bout of volatility, the 10-yr yield is on course to surrender eight basis points for the week while the 2-yr yield is down nine basis points from last Friday's settlement.
• Yield Check:
  • 2-yr: +1 bp to 3.56%
  • 3-yr: +2 bps to 3.58%
  • 5-yr: +3 bps to 3.70%
  • 10-yr: +2 bps to 4.11%
  • 30-yr: +1 bp to 4.71%