Bond Market Update

Opening Strength Maintained

• U.S. Treasuries are hanging onto their opening gains with issues in the belly maintaining their early strength. The market established a sideways range shortly after the open with 10s and shorter tenor sitting just below their highs at this time while the long bond has dipped from its best level, but it remains comfortably in the green. Economic data released this morning showed continued growth in flash Manufacturing (51.9) and Services (55.0) PMI readings for the U.S. while the University of Michigan's Consumer Sentiment Index hit 51.0 in the final reading for November, up from 50.3 in the preliminary reading, but down from 53.6 in October.
• Yield Check:
  • 2-yr: -6 bps to 3.50%
  • 3-yr: -5 bps to 3.50%
  • 5-yr: -6 bps to 3.62%
  • 10-yr: -4 bps to 4.06%
  • 30-yr: -2 bps to 4.71%