Bond Market Update

Defending Post-Data Gains

• Longer-dated Treasuries have clawed their way back to highs that were seen in immediate reaction to the Employment Situation report for November (64,000; Briefing.com consensus 30,000) and October Retail Sales (0.0%; Briefing.com consensus 0.3%). Shorter tenors have also seen some recent buying that has pushed them toward their best levels of the day, but they remain below session highs with the 2-yr yield hovering nearly three basis points above its morning low. The 30-yr yield, meanwhile, is just a basis point above today's low. Equities have widened their losses with the S&P 500 now down 0.7% with the energy sector (-3.0%) leading the weakness amid growing hopes for a Russia-Ukraine peace deal that would presumably lead to Russia's eventual return to the global oil market.
• Yield Check:
  • 2-yr: -3 bps to 3.48%
  • 3-yr: -4 bps to 3.52%
  • 5-yr: -4 bps to 3.70%
  • 10-yr: -3 bps to 4.16%
  • 30-yr: -2 bps to 4.83%