Bond Market Update

Gains Extended Despite Hot PPI

• U.S. Treasuries trade on a firmly higher note, having built on their gains after the release of January PPI (0.4%; Briefing.com consensus 0.2%) and Core PPI (0.3%; Briefing.com consensus 0.3%), a report that was combined with upward revisions to readings from December. However, Treasuries have advanced since the report's release, suggesting the market is hopeful that the January rise in CPI was temporary. Thanks to the recent gains, yields across the curve are now about two basis points above levels seen ahead of yesterday's release of January CPI.
• Yield Check:
  • 2-yr: -5 bps to 4.32%
  • 3-yr: -6 bps to 4.34%
  • 5-yr: -7 bps to 4.41%
  • 10-yr: -8 bps to 4.56%
  • 30-yr: -6 bps to 4.78%