Bond Market Update

Early Weakness Reversed

• U.S. Treasuries are back near their flat lines after rising off their starting lows. Treasuries marked their lowest levels of the day at the open, followed by some buying in reaction to the latest weekly Initial Claims report (214,000; Briefing.com consensus 212,000; prior 208,000), which showed a larger than expected increase. Treasuries continued their bounce in slow fashion over the next hour, encouraged by a CCTV report that preparations are being made for a Friday meeting between officials from U.S. and Iran. The report has also helped equity sentiment with the S&P 500 now down just 0.1%.
• Yield Check:
  • 2-yr: +1 bp to 3.80%
  • 3-yr: UNCH at 3.81%
  • 5-yr: UNCH at 3.92%
  • 10-yr: UNCH at 4.29%
  • 30-yr: -1 bp to 4.89%