Bond Market Update

Data Recon

• U.S. Treasuries have spent the first couple hours of the session in a retreat from their starting levels. The pullback from early highs has sent the front end into negative territory while longer tenors continue hanging onto modest gains, though they too have faced some early pressure.
• Existing home sales increased 1.5% month-over-month in September to a seasonally adjusted annual rate of 3.99 million (Briefing.com consensus 3.96 million) from a downwardly revised 3.93 million (from 3.98 million) in August. Sales were down 2.2% on a year-over-year basis.
  • The key takeaway from the report is that year-over-year sales were down in all four regions, reflecting persistent headwinds from high mortgage rates. As a result, August and September have been the slowest two months for home sales so far in 2026.
• Yield Check:
  • 2-yr: +2 bps to 4.81%
  • 3-yr: UNCH at 4.93%
  • 5-yr: UNCH at 5.02%
  • 10-yr: -2 bps to 5.22%
  • 30-yr: -3 bps to 5.57%