Bond Market Update

December CPI Offers Some Support

• U.S. Treasuries hold modest gains after seeing some brief volatility as the market received the CPI report for December, which showed in-line CPI growth at the headline level (0.3%) while core CPI (0.2%; Briefing.com consensus 0.3%) was a touch cooler than expected. Treasuries raced to fresh highs in immediate reaction to the report before slipping from their best levels The front end has shown some slight relative strength, though yields are down about a basis point across the curve. Equities are rising out of the gate with the S&P 500 (+0.1%) inching toward its record high from yesterday afternoon.
• Yield Check:
  • 2-yr: -2 bps to 3.53%
  • 3-yr: -1 bp to 3.59%
  • 5-yr: -1 bp to 3.76%
  • 10-yr: -1 bp to 4.18%
  • 30-yr: UNCH at 4.84%