Bond Market Update

Narrow Range in Early Trade

• U.S. Treasuries hover near their lows after a sideway start to the Monday session. The market slipped out of the gate at the start, but the early weakness did not invite additional selling. Instead, Treasuries have navigated a narrow range so far with shorter tenors showing slight relative weakness. The market received a better-than-expected New Home Sales report for July (652,000; Briefing.com consensus 630,000) in recent action, but the response has been minimal. Equities are off to a mixed start with the S&P 500 (-0.2%) holding a modest loss while the Nasdaq sits just above its flat line.
• Yield Check:
  • 2-yr: +4 bps to 3.73%
  • 3-yr: +4 bps to 3.68%
  • 5-yr: +4 bps to 3.80%
  • 10-yr: +3 bps to 4.29%
  • 30-yr: +2 bps to 4.91%