Bond Market Update

Opening Losses Maintained

• U.S. Treasuries trade just above their opening levels after a sideways start to the Friday session. Today's lower start lifted yields off their lowest levels of the week, but that did not invite additional follow-through selling. Instead, Treasuries have ranged near their starting levels with the 10-yr yield spending the past two hours in a two-basis point range. Most tenors inched to fresh highs after today's batch of data, which included a better-than-expected Existing Home Sales report for November (4.13 mln; Briefing.com consensus 4.10 mln) and a disappointing final reading of the December Consumer Sentiment survey from the University of Michigan (52.9; Briefing.com consensus 53.3). Equities are off to a higher start with the S&P 500 (+0.8%) returning to unchanged for the week.
• Yield Check:
  • 2-yr: +2 bps to 3.48%
  • 3-yr: +2 bps to 3.52%
  • 5-yr: +2 bps to 3.68%
  • 10-yr: +2 bps to 4.14%
  • 30-yr: +2 bps to 4.82%