Bond Market Update

Longer Tenors Trim Early Losses

• U.S. Treasuries remain in the red, though the first couple hours of action have seen some buying that has helped the long bond erase roughly half of its initial loss. Meanwhile, shorter tenors have faced a bit more resistance, keeping the 2-yr yield not far below its opening level. Equities are off to a modestly lower start in the S&P 500 (-0.3%), but that is masking early gains in seven sectors. Today's economic data was free of surprises with initial claims rising an in-line 5,000 to 210,000 while continuing claims decreased to 1.819 mln from 1.851 mln.
• Yield Check:
  • 2-yr: +4 bps to 3.92%
  • 3-yr: +4 bps to 3.92%
  • 5-yr: +6 bps to 4.03%
  • 10-yr: +4 bps to 4.36%
  • 30-yr: +2 bps to 4.92%