Bond Market Update

Losses Maintained

• Longer-dated Treasuries have inched back toward their opening levels while shorter tenors remain a bit closer to lows that were reached in reaction to today's release of flash S&P Global U.S. Manufacturing PMI (49.8; prior 52.7) and flash S&P Global U.S. Services PMI (54.3; prior 51.0) readings. The post-data slide lifted yields on longer tenors back to last week's highs, where the market has found some support. The rest of the week will bring a fairly busy data slate and three Treasury note auctions starting with a $69 bln 2-yr note offering tomorrow.
• Yield Check:
  • 2-yr: +7 bps to 4.02%
  • 3-yr: +7 bps to 4.00%
  • 5-yr: +7 bps to 4.08%
  • 10-yr: +6 bps to 4.31%
  • 30-yr: +4 bps to 4.64%