Bond Market Update

Short End Paces Post-NFP Rally

• U.S. Treasuries have rallied off their starting levels with shorter tenors setting the pace after the July jobs report showed nonfarm payroll growth (73,000; Briefing.com consensus 102,000) that was shy of expectations and was coupled with a sharp downward revision to the June increase (to 14,000 from 147,000). The early rally has sent the 2-yr yield from its July high toward levels seen at the beginning of last month while the 10-yr yield is at its lowest level in four weeks.
• Yield Check:
  • 2-yr: -15 bps to 3.80%
  • 3-yr: -14 bps to 3.75%
  • 5-yr: -11 bps to 3.85%
  • 10-yr: -7 bps to 4.29%
  • 30-yr: -3 bps to 4.85%