Bond Market Update

Data Recon

• The ADP Employment Change Report for May also created some buzz, as it was a fairly solid report. Private sector employment increased by 122,000 (Briefing.com consensus: 110,000) following a downwardly revised 105,000 (from 109,000) in April. The job gains were concentrated mostly in the service-providing sector (114,000), and they occurred across all business sizes, led by small establishments (67,000).
  • This report is a nice precursor to Friday's more comprehensive Employment Situation Report, and it is also another reminder why the Fed isn't expected to cut the target range for the fed funds rate anytime soon
• Yield check:
  • 2-yr: +3 bps to 4.08%
  • 3-yr: +3 bps to 4.12%
  • 5-yr: +3 bps to 4.21%
  • 10-yr: +4 bps to 4.49%
  • 30-yr: +2 bps to 4.99%