Bond Market Update

Defending Starting Gains

• U.S. Treasuries have dipped from their morning highs, but the pullback has been shallow, leaving the complex with solid gains near today's opening levels. Treasuries climbed through the initial 90 minutes of today's cash session amid an intense focus on the weakness in AI-related technology stocks, which overshadowed the release of a hot PPI report for September. Treasuries notched session highs just as equities hit lows shortly after the Wall Street open, but they have managed to hold the bulk of today's gains even though the bounce in equities has returned the S&P 500 to unchanged for the day while the Nasdaq (-0.5%) remains in the red.
• Yield Check:
  • 2-yr: -5 bps to 4.75%
  • 3-yr: -7 bps to 4.84%
  • 5-yr: -9 bps to 4.90%
  • 10-yr: -10 bps to 5.09%
  • 30-yr: -10 bps to 5.43%