Bond Market Update

Early Gains Extended

• U.S. Treasuries trade on their highs after seeing some buying in reaction to today's big batch of economic data that included cooler-than-expected April PPI (-0.5%; Briefing.com consensus 0.3%), below-consensus April Retail Sales (0.1%; Briefing.com consensus 0.2%), no change in weekly jobless claims (229,000; Briefing.com consensus 226,000), and soft manufacturing surveys from New York (-9.2; Briefing.com consensus 1.0) and Philadelphia (-4.0; Briefing.com consensus -6.0). Shorter tenors have been at the forefront of the post-data advance while the long bond has shown a bit more resistance. Equities are seeing some early pressure with the S&P 500 (-0.3%) staying ahead of the Nasdaq (-0.5%).
• Yield Check:
  • 2-yr: -6 bps to 3.99%
  • 3-yr: -7 bps to 3.98%
  • 5-yr: -7 bps to 4.09%
  • 10-yr: -5 bps to 4.48%
  • 30-yr: -2 bps to 4.95%