Bond Market Update

Early Gains Extended

• U.S. Treasuries trade on their highs after rising past their opening levels in recent action. Treasuries faced some pressure during the first 90 minutes of trade, with the complex briefly turning negative about 45 minutes ago. However, all tenors charged back into positive territory as crude oil deepened its retreat, falling below $100/bbl. In addition, the market received the final S&P Global U.S. Manufacturing PMI for April (54.5; prior 54.0), which accelerated from the prior reading. Meanwhile, the ISM Manufacturing Index for April (52.7%; Briefing.com consensus 53.1%; prior 52.7%) pointed to expansion at an unchanged pace from March. Equities are off to a higher start, looking for a strong finish to the week with the S&P 500 (+0.8%) now up 1.5% since last Friday.
• Yield Check:
  • 2-yr: -3 bps to 3.85%
  • 3-yr: -4 bps to 3.87%
  • 5-yr: -5 bps to 3.98%
  • 10-yr: -4 bps to 4.35%
  • 30-yr: -4 bps to 4.95%