Bond Market Update

Early Losses Trimmed

• U.S. Treasuries have inched up off their early lows but the entire complex remains in negative territory with the 10-yr note trading a bit behind other tenors. The first couple hours of action have seen a steady rise, though at a slow pace. The market received the Industrial Production report for December (0.4%; Briefing.com consensus 0.2%), which beat expectations and showed an uptick in Capacity Utilization to 76.3% (Briefing.com consensus 76.0%) from 76.1%. Equities are off to a flat start with the S&P 500 (-0.1%) holding a slim loss while the Nasdaq (+0.1%) outperforms.
• Yield Check:
  • 2-yr: +1 bp to 3.57%
  • 3-yr: +1 bp to 3.63%
  • 5-yr: +2 bps to 3.78%
  • 10-yr: +2 bps to 4.18%
  • 30-yr: +2 bps to 4.81%