Bond Market Update

Narrow Range Maintained

• U.S. Treasuries have spent the early portion of today's session in a sideways range, which leaves them near their opening levels at this time. The market faced some brief impulse selling in reaction to today's Personal Income/Outlays report, which showed above-consensus growth in Personal Income (0.9%; Briefing.com consensus 0.3%) and an unexpected decrease in Personal Spending (-0.2%; Briefing.com consensus 0.2%). The brief post-data weakness was reversed in short order, with Treasuries rising to fresh highs, but the past hour has seen a dip from those highs back to levels seen at the start of the cash session. Equities are off to a higher start with the S&P 500 (+0.6%) narrowing this week's loss to 2.0%.
• Yield Check:
  • 2-yr: -3 bps to 4.05%
  • 3-yr: -3 bps to 4.03%
  • 5-yr: -3 bps to 4.07%
  • 10-yr: -2 bps to 4.26%
  • 30-yr: -1 bp to 4.54%