Bond Market Update

Tuesday Advance Reversed

• U.S. Treasuries trade on their lows after retreating from their opening highs. Treasuries started the day near their flat lines, but selling pressure began building in short order, sending yields on most tenors back to their closing levels from Monday. The market reached the worst levels of the morning even though the Chicago PMI for November (36.3; Briefing.com consensus 44.5) came in well below expectations, pointing to a sharp contraction. Equities started the day on a higher note with the S&P 500 (+0.4%) extending this week's gain to 2.9%.
• Yield Check:
  • 2-yr: +4 bps to 3.50%
  • 3-yr: +4 bps to 3.49%
  • 5-yr: +4 bps to 3.61%
  • 10-yr: +4 bps to 4.04%
  • 30-yr: +3 bps to 4.69%