Bond Market Update

Opening Range Maintained

• U.S. Treasuries continue hovering near their starting levels, having held their ground in reaction to today's big batch of economic data. That batch included a slightly weaker-than-expected advance Q1 GDP (2.0%; Briefing.com consensus 2.1%) and a Personal Income/Outlays report for March, which showed above-consensus Personal Income (0.6%; Briefing.com consensus 0.4%) and Personal Spending (0.9%; Briefing.com consensus 0.4%) growth while the core PCE Price Index (0.3%) matched expectations. Separately, weekly Initial Claims fell back below the 200,000 mark, reflecting ongoing resilience in the labor market. Shorter tenors are continuing their early outperformance while the long bond lags, sitting just above its unchanged level.
• Yield Check:
  • 2-yr: -4 bps to 3.89%
  • 3-yr: -4 bps to 3.91%
  • 5-yr: -4 bps to 4.03%
  • 10-yr: -3 bps to 4.39%
  • 30-yr: -1 bp to 4.98%