Bond Market Update

Opening Range Maintained

• U.S. Treasuries continue holding their starting gains after spending the first 90 minutes of action in a sideways range. The higher start sent the 30-yr yield back to its low from Thursday while yields on shorter tenors hover just above their lowest levels of the month. The market received a couple economic reports this morning, but they have not invited any volatility. The Empire State Manufacturing survey fell to 5.7 in June (Briefing.com consensus 12.5) from 19.6 in May while May Industrial Production growth (0.1%; Briefing.com consensus 0.2%) was a bit below expectations. Reported not long ago, the NAHB Housing Market Index fell to 35 in June (Briefing.com consensus 37) from 37 in May. Equities are off toa strong start with the Nasdaq (+2.5%) and S&P 500 (+1.6%) returning to record territory.
• Yield Check:
  • 2-yr: -6 bps to 4.03%
  • 3-yr: -5 bps to 4.08%
  • 5-yr: -5 bps to 4.16%
  • 10-yr: -4 bps to 4.45%
  • 30-yr: -3 bps to 4.95%