Bond Market Update

Inching Lower

• U.S. Treasuries are off to a slightly lower start in shorter tenors while the long bond outperforms, trading flat. The first few minutes of action saw some buying with the market turning positive, but yesterday's highs have offered some resistance. The market has continued inching lower even though the New Home Sales report for January (657,000; Briefing.com consensus 681,000) missed expectations. Equities have started in positive territory, recovering some of yesterday's losses with the S&P 500 (+0.7%) approaching its 50-day moving average (5994).
• Yield Check:
  • 2-yr: +3 bps to 4.13%
  • 3-yr: +2 bps to 4.11%
  • 5-yr: +1 bp to 4.15%
  • 10-yr: +1 bp to 4.31%
  • 30-yr: UNCH at 4.56%