Bond Market Update

Long End Remains Behind

• Longer-dated Treasuries remain in the red with the long bond sitting at a fresh low for the year while shorter tenors trade above their starting levels. Treasuries tried to widen their starting losses, but the 10-yr note and shorter tenors quickly bounced off lows that were reached shortly after the release of today's batch of data, which included a weaker-than-expected advance reading of Q2 GDP (1.5%; Briefing.com consensus 2.3%) and a Personal Income/Outlays report for June that showed a slight deceleration in the year-over-year Core PCE Price Index 0.1% (expected 0.2%). Equities are off to a strong start with the Nasdaq (+2.4%) setting the pace while the S&P 500 (+1.2%) follows.
• Yield Check:
  • 2-yr: -2 bps to 4.22%
  • 3-yr: UNCH at 4.28%
  • 5-yr: +2 bps to 4.37%
  • 10-yr: +4 bps to 4.66%
  • 30-yr: +6 bps to 5.20%