Bond Market Update

Short End Climbs

• U.S. Treasuries have seen some early divergence after a lower start across the curve. The belly underperformed out of the gate, but the 5-yr note and shorter tenors have risen from their starting levels while the long bond has dipped to a fresh low in recent action, adding to its initial loss. This week's final batch of data showed a larger-than-expected decrease in Housing Starts for March (1.324 mln; Briefing.com consensus 1.418 mln), an unexpected drop in weekly jobless claims (215,000; Briefing.com consensus 225,000), and a much weaker-than-expected Philadelphia Fed survey for April (-26.4; Briefing.com consensus 10.0). Equities are looking to narrow this week's losses with the S&P 500 (+0.5%) trimming this week's decline to 1.1%.
• Yield Check:
  • 2-yr: -3 bps to 3.76%
  • 3-yr: -3 bps to 3.76%
  • 5-yr: -1 bp to 3.90%
  • 10-yr: +1 bp to 4.29%
  • 30-yr: +3 bps to 4.77%