Bond Market Update

Strong Start Sustained

• U.S. Treasuries trade on their highs after adding to their initial gains. Treasuries continued climbing after the cash open with some assistance from a weak start in equities. The market extended to fresh highs during the past few minutes after the release of a disappointing Consumer Confidence report for February (98.3; Briefing.com consensus 103.1; prior 105.3), which was just slightly better than last year's low (97.5). With the early gains, yields on all tenors are now back at levels last seen in early December with the 5-yr yield returning to its 200-day moving average (4.117%) ahead of today's $70 bln 5-yr note sale at 13:00 ET.
• Yield Check:
  • 2-yr: -8 bps to 4.09%
  • 3-yr: -9 bps to 4.08%
  • 5-yr: -10 bps to 4.13%
  • 10-yr: -10 bps to 4.30%
  • 30-yr: -8 bps to 4.56%