Bond Market Update

Opening Gains Narrowed

• U.S. Treasuries trade on their lows after a steady retreat from their starting levels. Treasuries started at their best levels of the morning with shorter tenors setting the early pace, but the entire complex has spent the past two hours in a steady retreat, which has pressured the long bond into the red while shorter tenors remain in positive territory by a small margin. Today's economic data was not particularly surprising as the final reading of the June S&P Global U.S. Services PMI came in at 51.2, down from 51.3 in the preliminary reading, while the ISM Non-Manufacturing Index (54.0%; Briefing.com consensus 54.2%) was a bit below expectations. Equities are off to an upbeat start with the S&P 500 up 0.6% while the Nasdaq (+1.1%) outperforms.
• Yield Check:
  • 2-yr: -1 bp to 4.13%
  • 3-yr: -1 bp to 4.16%
  • 5-yr: -1 bp to 4.22%
  • 10-yr: UNCH at 4.49%
  • 30-yr: +1 bp to 5.00%