Bond Market Update

Bounce Extended

• U.S. Treasuries trade just below session highs that were reached during the past hour. The market has climbed steadily after seeing an initial buying impulse in reaction to the jobs report for September, which showed solid payroll growth, but also included an uptick in the unemployment rate. The market has padded its gains alongside a reversal in stocks, which has the S&P 500 down nearly 1.0% after being up nearly 2.0% at the start of the session. Today's advance has sent yields on the 5-yr note and shorter tenors back below their respective 50-day moving averages while the 10-yr yield sits two basis points above the 50-day moving average of its own.
• Yield Check:
  • 2-yr: -5 bps to 3.55%
  • 3-yr: -4 bps to 3.55%
  • 5-yr: -4 bps to 3.67%
  • 10-yr: -3 bps to 4.10%
  • 30-yr: -2 bps to 4.73%