Bond Market Update

Opening Range Maintained

• U.S. Treasuries remain near their starting levels despite the release of a December PPI (0.5%; Briefing.com consensus 0.2%) report, which was much hotter than expected. Treasuries faced some pressure in immediate reaction to the report, but they found support once the 30-yr yield approached this week's high (4.895%). Up front, the 2-yr note displayed some relative strength at the start and it remains ahead despite the hot PPI. Equities are off to a modestly lower start with the S&P 500 (-0.3%) trimming its January gain to 1.6%.
• Yield Check:
  • 2-yr: UNCH at 3.55%
  • 3-yr: -1 bp to 3.61%
  • 5-yr: UNCH at 3.81%
  • 10-yr: +2 bps to 4.24%
  • 30-yr: +2 bps to 4.88%