Bond Market Update

Opening Advance Moderated

• U.S. Treasuries have slipped from their early highs with the long bond turning negative while shorter tenors remain in the green. Treasuries added to their opening gains in immediate reaction to a weekly jobless claims report (241,000; Briefing.com consensus 225,000), which showed a larger-than-expected increase, but they began slipping from highs in short order. The market accelerated its pullback in recent trade, just as investors received a disappointing Construction Spending for March (-0.5%; Briefing.com consensus 0.3%) and an April ISM Manufacturing Index (48.7%; Briefing.com consensus 47.9%), which showed an ongoing contraction in the manufacturing sector. Equities are off to a higher start with the S&P 500 (+1.0%) trailing the Nasdaq (+1.8%).
• Yield Check:
  • 2-yr: -3 bps to 3.59%
  • 3-yr: -3 bps to 3.58%
  • 5-yr: -3 bps to 3.72%
  • 10-yr: UNCH at 4.18%
  • 30-yr: +3 bps to 4.71%