Bond Market Update

Early Losses Extended

• U.S. Treasuries trade on their lows after adding to their initial losses with the belly remaining at the forefront of the selling. Treasuries inched up off their opening levels during the first hour of action, but they slid to fresh lows after the market received the flash S&P Global U.S. Manufacturing PMI (49.8; prior 52.7), which showed a return to contraction while flash S&P Global U.S. Services PMI (54.3; prior 51.0) pointed to an acceleration in growth. Equities started the day on a firmly higher note, encouraged by news that reciprocal tariffs that are scheduled to come into effect on April 2 will be more targeted than previously thought.
• Yield Check:
  • 2-yr: +6 bps to 4.01%
  • 3-yr: +7 bps to 4.00%
  • 5-yr: +7 bps to 4.08%
  • 10-yr: +7 bps to 4.32%
  • 30-yr: +5 bps to 4.65%