Bond Market Update

Opening Weakness Persists

• U.S. Treasuries remain near their opening levels after a sideway start to the cash session. The first 90 minutes of action saw an attempt at a bounce, but the market found resistance well before returning to its closing levels from Thursday. Recent action saw the 5-yr note and shorter tenors slip to fresh lows after the preliminary reading of the University of Michigan's Consumer Sentiment for March (57.9; Briefing.com consensus 65.6; prior 64.7) came in below expectations, showing an uptick in year-ahead (to 4.9% from 4.3%) and five-year (to 3.9% from 3.5%) inflation expectations.
• Yield Check:
  • 2-yr: +4 bps to 3.99%
  • 3-yr: +4 bps to 3.98%
  • 5-yr: +4 bps to 4.07%
  • 10-yr: +3 bps to 4.31%
  • 30-yr: +3 bps to 4.63%