Bond Market Update

Opening Retreat Reverses

• U.S. Treasuries have risen off their starting lows, lifting the 5-yr note and shorter tenors into positive territory while longer tenors remain modestly lower. The entire complex spent the better part of the past hour in a steady climb, reaching highs just as the market learned that job openings fell sharply in December, dropping to 7.600 million from a revised 8.156 million (from 8.098 million) in November. With the December drop, job openings returned toward last year's low (7.372 million), which was recorded in September. The market also received the Factory Orders report for December (-0.9%; Briefing.com consensus -0.3%), which was disappointing and included a downward revision to the November decline (to -0.8% from -0.4%). Equities are continuing to recover yesterday's losses with the S&P 500 (+0.5%) now down just 0.3% for the week.
• Yield Check:
  • 2-yr: -4 bps to 4.23%
  • 3-yr: -2 bps to 4.27%
  • 5-yr: -1 bp to 4.35%
  • 10-yr: +1 bp to 4.56%
  • 30-yr: +3 bps to 4.80%