Bond Market Update

Opening Range Maintained

• U.S. Treasuries remain near their starting levels after a sideways start to the midweek session. Treasuries notched their highs at the start, followed by some light backtracking that didn't gain traction with most tenors. The 2-yr note has given back a portion of its opening advance while longer tenors are essentially unchanged from the cash start even though investors received a few economic reports. The ADP Employment Change report for November (-32,000; Briefing.com consensus 20,000) was a disappointment, showing a contraction in the labor market, while September Industrial Production (0.1%) matched expectations. The S&P Global U.S. Services PMI hit 54.1 in the final reading for November, down from 55.0 in the preliminary reading and down from October's final reading of 54.8, while the ISM Services report for November (52.6%; Briefing.com consensus 52.4%) was a bit better than expected. Equities are off to a flat start with the S&P 500 hovering just below its flat line.
• Yield Check:
  • 2-yr: -3 bps to 3.49%
  • 3-yr: -3 bps to 3.50%
  • 5-yr: -3 bps to 3.62%
  • 10-yr: -3 bps to 4.06%
  • 30-yr: -1 bp to 4.73%