Bond Market Update

Opening Range Maintained

• U.S. Treasuries remain near their starting levels after seeing some volatility during the first hour of action. Treasuries slid to lows in immediate response to the December Employment situation report, which showed below-consensus headline nonfarm payrolls growth (50,000; Briefing.com consensus 55,000), but also included a dip in the Unemployment rate (to 4.4% from 4.5%) and an acceleration in the year-over-year average hourly earnings growth (to 3.8% from 3.6%). The post-data dip was followed by an immediate bounce and a second return to lows that also found support. Equities are higher in the early going with the S&P 500 (+0.5%) extending this week's gain to 1.4%.
• Yield Check:
  • 2-yr: +2 bps to 3.51%
  • 3-yr: +2 bps to 3.57%
  • 5-yr: +1 bp to 3.75%
  • 10-yr: UNCH at 4.18%
  • 30-yr: -1 bp to 4.85%