Bond Market Update

Higher Start Extended

• U.S. Treasuries trade on their highs after adding to their starting gains. The market climbed during the first hour of action even though the Employment Situation report for April showed strong headline nonfarm payrolls growth (123,000; Briefing.com consensus 67,000). Average hourly earnings growth (0.2%; Briefing.com consensus 0.3%) was a touch below expectations, which likely helped the market build on its starting gains. Yesterday's selling pressured the 10-yr note into negative territory for the week, but the entire complex is now back on track for a higher finish to the week. Similarly, equities are off to an upbeat start with the Nasdaq (+1.2%) and S&P 500 (+0.7%) extending this week's gains to 4.0% and 2.2%, respectively.
• Yield Check:
  • 2-yr: -4 bps to 3.88%
  • 3-yr: -4 bps to 3.91%
  • 5-yr: -4 bps to 4.00%
  • 10-yr: -4 bps to 4.35%
  • 30-yr: -3 bps to 4.94%