Bond Market Update

Morning Losses Trimmed

• U.S. Treasuries have risen from their morning lows, but the bounce has been shallow with only the long bond back at its opening level while shorter tenors trade closer to their lows. The resilient showing is reminiscent of what has been seen over the past two days as the market faced some early weakness only to return to the day's starting levels by the close. The New York Fed released its Survey of Consumer Expectations for December, showing an increase in year-ahead inflation expectations to 3.4% from 3.2% while three-year and five-year expectations remained at 3.0%.
• Yield Check:
  • 2-yr: +2 bps to 3.49%
  • 3-yr: +3 bps to 3.55%
  • 5-yr: +4 bps to 3.73%
  • 10-yr: +4 bps to 4.18%
  • 30-yr: +4 bps to 4.85%