Bond Market Update

Modest Losses Maintained

• U.S. Treasuries remain near their opening levels after a sideways start to the Tuesday session. Treasuries started with modest losses but tried to bounce immediately after the open. However, the unchanged level acted as resistance, establishing the top end of today's narrow early range. The final reading of the S&P Global U.S. Services PMI for December (52.5) showed a dip from the flash reading (52.9) and was also down from the final November reading (54.1), reflecting a notable deceleration in the pace of growth in the services sector. The market impact has been muted, leaving Treasuries at levels seen before the report crossed the wires. Equities are off to a higher start with the S&P 500 (+0.4%) extending this week's gain to 1.0%.
• Yield Check:
  • 2-yr: +1 bp to 3.47%
  • 3-yr: +1 bp to 3.53%
  • 5-yr: +1 bp to 3.72%
  • 10-yr: +1 bp to 4.18%
  • 30-yr: +1 bp to 4.87%