Bond Market Update

Opening Range Maintained

• U.S. Treasuries continue hovering near their starting levels after a sideways start to the session. The market has seen limited movement so far, keeping the 10-yr yield inside a two-basis point range, and today's economic data has not had much impact on the early price action. April Housing Starts (1.465 mln; Briefing.com consensus 1.420 mln) and Building Permits (1.442 mln; Briefing.com consensus 1.380 mln) were better than expected while Initial Claims dipped to 209,000 (Briefing.com consensus 210,000) from 211,000), remaining in a narrow recent range. Reported not long ago, flash S&P Global U.S. Manufacturing PMI (55.3; prior 54.5) and flash S&P Global U.S. Services PMI (50.9; prior 51.0) remained in expansion. Equities are off to a soft start with the Nasdaq (-0.6%) trading behind the S&P 500 (-0.4%).
• Yield Check:
  • 2-yr: +6 bps to 4.10%
  • 3-yr: +6 bps to 4.17%
  • 5-yr: +6 bps to 4.28%
  • 10-yr: +4 bps to 4.61%
  • 30-yr: +2 bps to 5.14%