Bond Market Update

Long End Bounces

• Shorter-dated U.S. Treasuries are on track for a lower start after outperforming yesterday while longer tenors are set to begin in positive territory. The overnight session was fairly quiet, as Treasury futures faced some early pressure that was partially alleviated as the night went on. Global equities have had a mixed showing amid a light data calendar. This has left the overall focus on the ongoing tariff discussion. The U.S. session will not see any data today, but the U.S. Treasury will start this week's note auction slate with a $69 bln 2-yr note sale. Crude oil is recovering yesterday's loss while the U.S. Dollar Index is up 0.1% at 98.40.
• Yield Check:
  • 2-yr: +5 bps to 3.80%
  • 3-yr: +4 bps to 3.81%
  • 5-yr: +2 bps to 3.98%
  • 10-yr: -1 bp to 4.40%
  • 30-yr: -3 bps to 4.88%

• News:
  • Large e-commerce companies in China are trying to redirect some of their sales to the domestic market due to weakening international demand, according to FT.
  • Japanese bank regulators are encouraging banks to support small companies whose financing has been impacted by tariffs.
  • European Commission President Ursula von der Leyen stated that amid growing unpredictability, countries are "lining up" to work with the EU as a "strong, reliable partner."
  • Japan's February BoJ Core CPI was up 2.2% yr/yr (expected 2.4%; last 2.2%).
  • South Korea's March PPI was unchanged m/m (last 0.0%), rising 1.3% yr/yr (last 1.5%).
  • Hong Kong's March Unemployment Rate held at 3.2%.
  • New Zealand's March trade surplus reached NZD970 mln (expected surplus of NZD80 mln; last surplus of NZD392 mln).
  • Spain's February trade deficit reached EUR3.42 bln (last deficit of EUR6.19 bln).
• Commodities:
  • WTI Crude: +1.6% to $63.39/bbl
  • Gold: +1.1% to $3464.20/ozt
  • Copper: +1.1% to $4.779/lb
• Currencies:
  • EUR/USD: -0.1% to 1.1498
  • GBP/USD: UNCH at 1.3376
  • USD/CNH: +0.4% to 7.3161
  • USD/JPY: -0.4% to 140.19
• No Data on Today's Schedule
• Treasury Auctions:
  • 13:00 ET: $69 bln 2-yr Treasury note auction results