Bond Market Update

Early Losses Widened

• U.S. Treasuries trade just above their lows after adding to their initial losses. Treasuries have faced pressure from the start, thanks in part to upbeat economic data, as Housing Starts (1.404 mln; Briefing.com consensus 1.320 mln) and Building Permits (1.448 mln; Briefing.com consensus 1.412 mln) beat December expectations while Durable Orders (-1.4%; Briefing.com consensus -2.5%) showed a smaller than expected decrease in December. Reported not long ago, Industrial Production was up 0.7% in January (Briefing.com consensus 0.4%), which also exceeded expectations. Equities are off to a higher start with the S&P 500 rising 0.5%.
• Yield Check:
  • 2-yr: +2 bps to 3.46%
  • 3-yr: +3 bps to 3.50%
  • 5-yr: +4 bps to 3.66%
  • 10-yr: +3 bps to 4.08%
  • 30-yr: +2 bps to 4.70%