Bond Market Update

Early Losses Extended

• U.S. Treasuries trade on their lows after widening their initial losses. Treasuries started just below their flat lines with some additional pressure seeping through in early action. Shorter tenors have paced the early intraday selling while the long bond has resisted some of the pressure. Economic data released today showed an upward revision to Q3 GDP (4.4%), another low reading of weekly initial claims (200,000) and the Personal Income/Outlays report for October and November that showed the Core PCE Price Index at 2.8% year-over-year. Equities are off to a higher start with the S&P 500 (+0.6%) trimming this week's loss to 0.4%.
• Yield Check:
  • 2-yr: +2 bps to 3.62%
  • 3-yr: +3 bps to 3.69%
  • 5-yr: +3 bps to 3.86%
  • 10-yr: +2 bps to 4.27%
  • 30-yr: UNCH at 4.87%