Bond Market Update

Short End Maintains Early Lead

• U.S. Treasuries have added to their early gains with shorter tenors maintaining their lead, though the past few minutes have seen a dip from highs across the curve. Treasuries extended their gains shortly after the cash start, rising through the release of a weekly Initial Claims report (231,000; Briefing.com consensus 210,000; prior 209,000), which showed a sizable increase after few weeks of readings around 200,000. On a side note, the Challenger Job Cuts report, which rarely catches the market's attention, showed that job cuts in January were up 117.8% year-over-year with some of the biggest companies responsible for the increase. Equities are off to a soft start, though there is some strength in tech stocks while other sectors are giving back some of this week's gains.
• Yield Check:
  • 2-yr: -5 bps to 3.51%
  • 3-yr: -5 bps to 3.59%
  • 5-yr: -4 bps to 3.79%
  • 10-yr: -3 bps to 4.24%
  • 30-yr: -2 bps to 4.90%