Bond Market Update

Pushing Higher

• U.S. Treasuries trade at their best levels of the morning with the belly inching ahead of longer tenors. That said the entire complex has been able to sustain today's opening gains with action on session highs at this juncture. The early advance has been encouraging for overall sentiment with the 30-yr yield dipping past last week's low (5.183%) while the 10-yr yield is close to doing the same. Treasuries added to their gains after today's economic data showed another decrease in the Consumer Confidence Index in August (to 89.4 from 90.2; Briefing.com consensus 90.6) and a deceleration the pace of New Home Sales for July (to 607,000 from 678,000; Briefing.com consensus 620,000). Equities started the day in positive territory, but the early gains have faced some resistance, leaving the S&P 500 up just 0.1% while the Nasdaq (+0.4%) outperforms.
• Yield Check:
  • 2-yr: -4 bps to 4.20%
  • 3-yr: -4 bps to 4.26%
  • 5-yr: -5 bps to 4.36%
  • 10-yr: -5 bps to 4.65%
  • 30-yr: -4 bps to 5.19%