Bond Market Update

Early Gains Padded

• U.S. Treasuries have added to their early gains with the belly maintaining its early lead. Treasuries followed their higher start with some volatility in immediate reaction to today's first batch of data and a push to fresh highs. The trade deficit narrowed to $52.8 bln in September, which was the smallest deficit since mid-2020. Separately, Initial Claims jumped to 236,000 from just 192,000 last week, which was the lowest total since early 2024. Treasuries have dipped from their highs over the past hour, but they remain not far from their best levels.
• Yield Check:
  • 2-yr: -5 bps to 3.52%
  • 3-yr: -6 bps to 3.55%
  • 5-yr: -6 bps to 3.69%
  • 10-yr: -5 bps to 4.11%
  • 30-yr: -4 bps to 4.76%