Bond Market Update

Short End Ahead

• U.S. Treasuries trade in mixed fashion with gains up front and a slight loss in the long bond. Treasuries began the day in the red, but the entire complex rallied to highs in immediate reaction to the release of the Employment Situation report for June (57,000; Briefing.com consensus 110,000), which showed underwhelming payroll growth, though the unemployment rate unexpectedly dipped to 4.2% from 4.3%. The post-data rally was followed by some light backtracking over the past 90 minutes, though the pace of the action has been slowing in recent trade. Keep in mind that the Treasury market will close at 14:00 ET today.
• Yield Check:
  • 2-yr: -3 bps to 4.13%
  • 3-yr: -2 bps to 4.16%
  • 5-yr: -1 bp to 4.23%
  • 10-yr: +1 bp to 4.48%
  • 30-yr: +1 bp to 4.98%