Bond Market Update

Mixed in Early Trade

• U.S. Treasuries are mixed, with the 2-yr note sitting near its lowest level of the session while the long bond outperforms, holding a modest gain. While the market has seen some divergence, the overall movement has been limited even though investors received preliminary Unit Labor Costs (1.6%; Briefing.com consensus 1.5%; prior 6.9%) and Productivity (2.4%; Briefing.com consensus 2.2%; prior -1.8%) for Q2. Equities are off to a higher start with the Nasdaq (+0.6%) trading well ahead of the S&P 500 (+0.1%).
• Yield Check:
  • 2-yr: +2 bps to 3.72%
  • 3-yr: +2 bps to 3.68%
  • 5-yr: +1 bp to 3.78%
  • 10-yr: +1 bp to 4.23%
  • 30-yr: -2 bps to 4.80%