Bond Market Update

Hovering Near Lows

• U.S. Treasuries trade near their lows after a sideways start to the midweek session. The 5-yr note and shorter tenors opened the day just below their flat lines while longer tenors started in positive territory before dipping from their early highs. Economic data released this morning included a weak Housing Starts (1.307 mln; Briefing.com consensus 1.375 mln) and Building Permits report for August (1.312 mln; Briefing.com consensus 1.370 mln). Treasuries reached highs shortly after the report was released, then slipped to lows. Equities are off to a subdued start with the S&P 500 (-0.1%) trading a bit ahead of the Nasdaq (-0.4%).
• Yield Check:
  • 2-yr: +1 bp to 3.52%
  • 3-yr: +2 bps to 3.49%
  • 5-yr: +2 bps to 3.60%
  • 10-yr: UNCH at 4.03%
  • 30-yr: -2 bps to 4.63%