Bond Market Update

Belly Lags

• U.S. Treasuries sit on their lows after a slow retreat from their opening levels. The trading day started with slim losses in all tenors followed by some more selling after the cash start. The belly is a bit behind, keeping the 5-yr yield at a three-week high. Treasuries reached fresh lows as the market received the New Home Sales report for August (800,000; Briefing.com consensus 650,000), which beat expectations by a solid margin. Equities are off to a flat start with the S&P 500 remaining little changed for the week.
• Yield Check:
  • 2-yr: UNCH at 3.59%
  • 3-yr: +2 bps to 3.59%
  • 5-yr: +3 bps to 3.70%
  • 10-yr: +2 bps to 4.14%
  • 30-yr: +2 bps to 4.76%