Bond Market Update

Data Recon

• U.S. Treasuries have widened their starting losses with the front end continuing its early show of relative weakness as crude oil climbs off its overnight low, returning above $91/bbl.
• The preliminary reading for the University of Michigan Consumer Sentiment Index for October decreased to 46.3 (Briefing.com consensus: 48.1) from the final reading of 48.1 for September. In the same period a year ago, the index stood at 53.6.
  • The key takeaway from the report is that consumer sentiment continues to deteriorate as the frustrations with the higher cost-of-living increase.
• Yield Check:
  • 2-yr: +4 bps to 4.80%
  • 3-yr: +5 bps to 4.94%
  • 5-yr: +5 bps to 5.04%
  • 10-yr: +4 bps to 5.27%
  • 30-yr: +2 bps to 5.63%