Bond Market Update

Early Gains Padded

• U.S. Treasuries trade on their highs after adding to their starting gains. Treasuries followed their modestly higher open with a sideways drift that saw an extension to fresh highs after the release of flash Manufacturing (51.6; prior 51.2) and Services (49.7; prior 52.9) PMI readings for the U.S., which showed the first contraction in the services sector since early 2023. These reports were followed by above-consensus Existing Home Sales for January (4.08 mln; Briefing.com consensus 4.06 mln) and a below-consensus final February Consumer Sentiment survey from the University of Michigan (64.7; Briefing.com consensus 67.8). Equities are off to a soft start with the S&P 500 (-0.4%) turning negative for the week (-0.3%).
• Yield Check:
  • 2-yr: -3 bps to 4.24%
  • 3-yr: -4 bps to 4.24%
  • 5-yr: -4 bps to 4.31%
  • 10-yr: -4 bps to 4.46%
  • 30-yr: -4 bps to 4.70%