Bond Market Update

Early Gains Extended

• U.S. Treasuries trade on their highs after extending their initial gains. Treasuries followed their upbeat start with a push to fresh highs after the release of the Personal Income/Outlays report for February, which included a combination of above-consensus growth in Personal Income (0.8%; Briefing.com consensus 0.4%), below-consensus Personal Spending (0.4%; Briefing.com consensus 0.6%), and an acceleration in the yr/yr core PCE rate (to 2.8% from 2.7%). Treasuries continued building on their gains after the report's release, reaching highs just as the market received the final reading of the University of Michigan's Consumer Sentiment Index for March, which was revised down to 57.0 from 57.9 (Briefing.com consensus 57.9).
• Yield Check:
  • 2-yr: -6 bps to 3.94%
  • 3-yr: -7 bps to 3.93%
  • 5-yr: -8 bps to 4.02%
  • 10-yr: -9 bps to 4.28%
  • 30-yr: -9 bps to 4.64%