Bond Market Update

Opening Gains Narrowed

• U.S. Treasuries have retreated from their early highs with the 5-yr note and shorter tenors dipping into negative territory while longer tenors remain in the green by a slim margin. Treasuries added to their initial gains during the first hour of action even though the ADP Employment Change report for March (155,000; Briefing.com consensus 120,000) showed above-consensus growth coupled with an upward revision to February's reading (to 84,000 from 77,000). Treasuries slid from highs as equities bounced off their opening lows with the market receiving some help from a report that President Trump is unlikely to announce a 20% across the board tariff.
• Yield Check:
  • 2-yr: +2 bps to 3.88%
  • 3-yr: UNCH at 3.85%
  • 5-yr: UNCH at 3.91%
  • 10-yr: -1 bp to 4.15%
  • 30-yr: -2 bps to 4.50%