Bond Market Update

Sliding to Lows

• U.S. Treasuries trade on their lows after sliding from their starting levels. Treasuries started the day near their flat lines, but they quickly found selling pressure that drove action to fresh lows for the week. Economic data released this morning included ab above-consensus ADP Employment Change report for October (42,000) and the final S&P Global U.S. Services PMI for October, which hit 54.8, down from 55.2 in the preliminary reading, but up from 54.2 in the final reading for September. Not long ago, the ISM Services Index for October (52.4%; Briefing.com consensus 50.9%) came in well ahead of expectations, pressuring Treasuries to lows. In Washington, the Supreme Court is hearing the Trump administration's case on tariff authority.
• Yield Check:
  • 2-yr: +3 bps to 3.61%
  • 3-yr: +3 bps to 3.62%
  • 5-yr: +4 bps to 3.74%
  • 10-yr: +5 bps to 4.14%
  • 30-yr: +5 bps to 4.72%