Bond Market Update

Lower Start Reversed

• U.S. Treasuries hold modest gains after rising off lows in reaction to the Employment Situation report for September, which showed above-consensus Nonfarm Payrolls growth (119,000; Briefing.com consensus 50,000), though it was combined with a downward revision to the reading from August (to -4,000 from 22,000) and an uptick in the Unemployment Rate to 4.4% from 4.3%. Treasuries rallied in immediate reaction to the report, inching past their post-data highs in recent trade. Equities started the day on a strong note with the S&P 500 (+1.7%) turning positive for the week (+0.3%).
• Yield Check:
  • 2-yr: -3 bps to 3.57%
  • 3-yr: -3 bps to 3.56%
  • 5-yr: -3 bps to 3.68%
  • 10-yr: -2 bps to 4.11%
  • 30-yr: -1 bp to 4.74%