Bond Market Update

Early Gains Defended

• U.S. Treasuries trade just below their best levels of the morning after a sideways start to today's session. The market inched above its opening levels during the first 30 minutes of action, responding to today's economic data, which included a larger-than-expected increase in Durable Orders for March (9.2%; Briefing.com consensus 1.5%) and a larger-than-expected increase in weekly jobless claims (to 222,000 from 216,000; Briefing.com consensus 220,000). The early advance has pressured the 10-yr yield toward the midpoint of yesterday's range while the 2-yr yield has returned to yesterday's opening level.
• Yield Check:
  • 2-yr: -6 bps to 3.80%
  • 3-yr: -7 bps to 3.81%
  • 5-yr: -6 bps to 3.95%
  • 10-yr: -6 bps to 4.33%
  • 30-yr: -5 bps to 4.79%