Bond Market Update

Fresh Lows Set

• Recent action saw some renewed pressure across the curve, lifting yields on all tenors to fresh highs for the day. The market tried to stage a late-morning bounce after the release of a weak ISM Manufacturing report for November (48.2%; Briefing.com consensus 49.0%; prior 48.7%), but the brief bounce was not sustained. While today's selling comes alongside solidifying expectations for a December rate hike from the Bank of Japan, there is also an elevated potential for some geopolitical shifts as President Trump will meet with his military advisers this evening to discuss Venezuela. Crude oil is building on last week's bounce off a one-month low but is still about $1/bbl below its 50-day moving average (60.36).
• Yield Check:
  • 2-yr: +4 bps to 3.53%
  • 3-yr: +5 bps to 3.54%
  • 5-yr: +7 bps to 3.67%
  • 10-yr: +8 bps to 4.09%
  • 30-yr: +8 bps to 4.74%