Bond Market Update

Higher Start Sustained

• U.S. Treasuries trade a touch above their starting levels, though early action has been confined to a narrow range. The market received the March CPI report shortly after the open, which was much cooler than the market had expected. The headline (0.5%; Briefing.com consensus 1.2%) and Core (0.1%; Briefing.com consensus 0.4%) readings were well below expectations and there were also downward revision to February readings at the headline (to 0.5% from 0.7%) and Core (0.3% from 0.5%) levels. Interestingly, Treasuries were essentially unmoved by the report, rising to highs during the past 30 minutes. Equities are building on yesterday's advance with the S&P 500 (+0.7%) now up 1.7% for the week.
• Yield Check:
  • 2-yr: -1 bp to 3.77%
  • 3-yr: -1 bp to 3.79%
  • 5-yr: -2 bps to 3.90%
  • 10-yr: -2 bps to 4.28%
  • 30-yr: -1 bp to 4.89%