Bond Market Update

Longer Tenors Turn Lower

• U.S. Treasuries hold slim losses after a slow retreat from their early highs. Treasuries opened with modest gains, but there was no follow-through buying after the higher start. The market began drifting down from its starting levels about 30 minutes after the open with longer tenors turning negative while the short end is ahead. This week's data slate was capped with the release of the final S&P Global U.S. Manufacturing PMI, which hit 51.8, unchanged from the flash reading. Equities are off to a higher start with the S&P 500 (+0.4%) trailing the Nasdaq (+0.6%).
• Yield Check:
  • 2-yr: UNCH at 3.48%
  • 3-yr: UNCH at 3.54%
  • 5-yr: UNCH at 3.73%
  • 10-yr: +1 bp to 4.17%
  • 30-yr: +2 bps to 4.86%