Bond Market Update

Opening Gains Reversed

• U.S. Treasuries trade on their lows after a steady slide from their opening levels. Treasuries opened the day with slim gains, hitting fresh highs in immediate reaction to the March CPI report, which showed a hotter-than-expected headline reading (0.9%; Briefing.com consensus 0.7%) while Core CPI (0.2%; Briefing.com consensus 0.2%) was a touch cooler than expected. However, Treasuries quickly turned down from their highs, turning negative. The market has held on lows in reaction to the latest batch of data, which included disappointing Factory Orders for February (0.0%; Briefing.com consensus 0.5%) and a weak preliminary reading of the University of Michigan's Consumer Sentiment Index for April (47.6; Briefing.com consensus 52.0).
• Yield Check:
  • 2-yr: +1 bp to 3.79%
  • 3-yr: UNCH at 3.81%
  • 5-yr: +1 bp to 3.93%
  • 10-yr: +1 bp to 4.31%
  • 30-yr: +2 bps to 4.91%