Bond Market Update

Buyers Take a Break

• The buying interest that was prevalent before the start of the cash session has faded. Treasuries continue to sit on gains, but those gains have been pared during the cash session.
• Some of the overnight strength was attributable to the weakness in Asian equity markets, as well as the expected and continued weakness for the tech stocks, evidenced by the losses registered in the Nasdaq 100 futures ahead of today's open.
• The tech sector, overall, is weak but improved from its opening lows; meanwhile, the U.S. stock market is again exhibiting strong resilience to selling interest, as well as bull market tendencies that show up in some heady rotational action today.
  • The S&P 500 information technology sector is down 1.9%, but the health care sector is up 3.2%, and the financials sector is up 2.6%, to name a few. In fact, nine of the 11 S&P 500 sectors are higher.
  • The Nasdaq Composite is down 121 points, or 0.4%, yet the Dow Jones Industrial Average is up 848 points, or 1.7%.
• Treasuries have pared their gains as stocks have weathered the tech sector's weakness quite well.
• Yield check:
  • 2-yr: -5 bps to 4.04%
  • 3-yr: -5 bps to 4.09%
  • 5-yr: -5 bps to 4.17%
  • 10-yr: -3 bps to 4.46%
  • 30-yr: -2 bps to 4.97%