Bond Market Update

Sitting on Lows

• U.S. Treasuries trade near their lows after retreating in reaction to the January jobs report, which showed a slowdown in job growth, but also included big upward revisions to figures from November and December. The market made a brief move into positive territory in immediate reaction to the report, but Treasuries reversed immediately, falling to lows. The market reached fresh lows in recent trade, responding to the preliminary February reading of the University of Michigan's Consumer Sentiment index, which showed an increase in year-ahead inflation expectations to 4.3% from 3.3%. The early selling has lifted the 10-yr yield back above its 50-day moving average (4.484%) after two days below that level. Equities are seeing some early pressure with the Nasdaq (-0.5%) leading the weakness.
• Yield Check:
  • 2-yr: +6 bps to 4.27%
  • 3-yr: +7 bps to 4.30%
  • 5-yr: +8 bps to 4.35%
  • 10-yr: +6 bps to 4.50%
  • 30-yr: +5 bps to 4.70%