Bond Market Update

Opening Gains Padded

• U.S. Treasuries trade on their highs after adding to their starting gains. The Treasury complex started today's session comfortably above yesterday's closing levels, followed by a sideways drift through the first 90 minutes of trade. The market briefly inched to fresh lows, but quickly bounced to a fresh high, just after investors received the flash Manufacturing (53.8; prior 53.9) and Services (53.6; prior 51.2) PMI readings for July. These reports were quickly followed by the release of a better-than-expected New Home Sales report for June (628,000; Briefing.com consensus 620,000), but Treasuries inched to fresh highs despite the strong reading. Equities are off to a mixed start with the S&P 500 (+0.1%) trying to defend a slim gain while the Nasdaq (-0.5%) lags.
• Yield Check:
  • 2-yr: -3 bps to 4.33%
  • 3-yr: -3 bps to 4.36%
  • 5-yr: -4 bps to 4.42%
  • 10-yr: -4 bps to 4.67%
  • 30-yr: -3 bps to 5.15%