Bond Market Update

Short End Behind

• Shorter-dated U.S. Treasuries trade not far above their morning lows while the long end outperforms with the 30-yr bond holding a slim gain. Treasuries faced some selling in immediate reaction to today's batch of economic data, which showed another slip below the 200,000 mark in weekly Initial Claims (198,000), suggesting ongoing resilience in the labor market. The post-data losses were recovered quickly but the past 30 minutes have seen some renewed pressure that has returned shorter tenors to their lows. Equities are off to a higher start with the S&P 500 (+0.5%) trailing the Nasdaq (+0.7%).
• Yield Check:
  • 2-yr: +4 bps to 3.55%
  • 3-yr: +4 bps to 3.60%
  • 5-yr: +3 bps to 3.75%
  • 10-yr: +1 bp to 4.15%
  • 30-yr: -1 bp to 4.78%