Bond Market Update

Early Losses Extended

• U.S. Treasuries have added to their initial losses, lifting the 5-yr yield toward its high from January (3.873%). Treasuries stayed near their starting levels in immediate reaction to today's batch of economic data, which was generally positive. The trade deficit narrowed in January, jobless claims remained at a low level, and housing starts grew, though single-unit starts decreased. Treasuries widened their losses during the past 30 minutes alongside a weak open in equities and a continued rise in the price of oil, which is now approaching $95/bbl after Iran's leader threatened to open new fronts if hostilities continue.
• Yield Check:
  • 2-yr: +4 bps to 3.67%
  • 3-yr: +4 bps to 3.69%
  • 5-yr: +4 bps to 3.82%
  • 10-yr: +3 bps to 4.24%
  • 30-yr: +3 bps to 4.89%