Bond Market Update

Early Gains Reversed

• U.S. Treasuries trade on their lows after a steady slide from their opening highs. The higher open pressured yields back to their lows from yesterday, but the entire complex reversed after this morning's batch of economic data showed much stronger-than-expected GDP growth in Q3 (4.3%; Briefing.com consensus 3.0%). The solid growth in Q3 has led to speculation that inflation could end up being more persistent than the market had hoped for, lifting yields on longer tenors back to their highs for the month.
• Yield Check:
  • 2-yr: +4 bps to 3.55%
  • 3-yr: +4 bps to 3.60%
  • 5-yr: +4 bps to 3.76%
  • 10-yr: +3 bps to 4.20%
  • 30-yr: +2 bps to 4.86%