Bond Market Update

Opening Gains Padded

• U.S. Treasuries trade on their highs after adding to their starting gains. Treasuries opened in positive territory thanks to a sharp rally in the futures market that followed President Trump's comments, which made it seem that deescalation with Iran is possible. Shorter tenors trade a bit ahead while equities have started the day on a strong note with the S&P 500 rising 1.9% in the early going. The market received the Construction Spending report for January (-0.3%; Briefing.com consensus 0.1%) not long ago, missing expectations.
• Yield Check:
  • 2-yr: -5 bps to 3.84%
  • 3-yr: -5 bps to 3.86%
  • 5-yr: -4 bps to 3.97%
  • 10-yr: -4 bps to 4.35%
  • 30-yr: -4 bps to 4.92%