Bond Market Update

Early Gains Sustained

• U.S. Treasuries trade just above their starting levels, making for a continuation of a quiet start to the week. Treasuries started the day with gains that were paced by the belly, followed by an early extension to fresh highs after the release of a weak Empire State Manufacturing survey for December (-3.6; Briefing.com consensus 10.6). The market made a brief attempt at dipping past its opening levels but quickly advanced to fresh highs. Equities are off to a soft start with the Nasdaq (-0.4%) trailing the S&P 500 (-0.1%).
• Yield Check:
  • 2-yr: -3 bps to 3.50%
  • 3-yr: -4 bps to 3.55%
  • 5-yr: -4 bps to 3.71%
  • 10-yr: -4 bps to 4.16%
  • 30-yr: -3 bps to 4.83%