Bond Market Update

Longer Tenors Maintain Early Weakness

• U.S. Treasuries trade on their lows after slipping from their starting levels. Treasuries started the day near their flat lines with longer tenors showing some relative weakness with the entire complex rising to fresh highs in immediate reaction to the July Retail Sales report (-0.6%; Briefing.com consensus 0.2%), which missed expectations by a wide margin. However, the post-data uptick was followed by an immediate return to pre-data levels, followed by some more selling over the past hour. Equities started the day near their flat lines with the S&P 500 (+0.1%) extending this week's gain to 0.6%.
• Yield Check:
  • 2-yr: -1 bp to 4.13%
  • 3-yr: UNCH at 4.21%
  • 5-yr: +1 bp to 4.32%
  • 10-yr: +2 bps to 4.66%
  • 30-yr: +3 bps to 5.24%