Bond Market Update

Early Losses Widened

• U.S. Treasuries trade near their lows after adding to their initial losses. Treasuries began widening their starting losses immediately after the cash start, marking session lows about 30 minutes ago. The market has edged up off lows after receiving two manufacturing-related reports for November. The S&P Global U.S. Manufacturing PMI hit 52.2 in the final reading for November, up from 51.9 in the preliminary reading, but down from October's reading of 52.5. The expansionary reading contrasted with the more impactful ISM Manufacturing Index (48.2%; Briefing.com consensus 49.0%; prior 48.7%), which showed a deepening contraction. Today's early selling has sent the 30-yr yield back above its 50-day moving average (4.678%) while the 10-yr yield sits right on the 50-day moving average of its own (4.080%). Equities are off to a lower start with the S&P 500 down 0.5%.
• Yield Check:
  • 2-yr: +4 bps to 3.53%
  • 3-yr: +4 bps to 3.53%
  • 5-yr: +5 bps to 3.65%
  • 10-yr: +7 bps to 4.08%
  • 30-yr: +7 bps to 4.74%