Bond Market Update

Opening Losses Widened

• U.S. Treasuries trade near their lows after widening their initial losses. Treasuries deepened today's retreat after economic data released this morning was better than expected. Q2 GDP was revised up to 3.8% from 3.3% while Durable Orders grew unexpectedly in August (2.9%; Briefing.com consensus -0.5%), and weekly Initial Claims decreased (218,000; 232,000 prior). The data sent a positive signal about the economy but this will weigh on rate cut expectations. Equities are off to a lower start with the S&P 500 (-0.5%) extending this week's loss to 0.9%.
• Yield Check:
  • 2-yr: +5 bps to 3.65%
  • 3-yr: +5 bps to 3.65%
  • 5-yr: +6 bps to 3.77%
  • 10-yr: +4 bps to 4.19%
  • 30-yr: +1 bp to 4.77%