Bond Market Update

Narrow Range Maintained

• U.S. Treasuries trade just above their flat line after a subdued start to the cash session. The first few minutes of action saw a dip into the red, but it never went anywhere. Treasuries hovered at their initial lows as the market received today's batch of economic data. There were no surprises in the weekly Initial Claims report, so the only soft spot was the advance Wholesale Inventories report, which showed the largest inventory build (1.3%) since May. Treasuries have spent the past hour in a slow grind toward highs, but all of this morning's movement has taken place inside a narrow range with the 10-yr yield bouncing between 4.66% and 4.67%. Equities are off to a higher start thanks entirely to strength in the technology sector (+2.3%) after NVIDIA's results. The Nasdaq (+0.9%) leads while the S&P 500 (+0.3%) holds a slimmer gain.
• Yield Check:
  • 2-yr: UNCH at 4.22%
  • 3-yr: -1 bp to 4.28%
  • 5-yr: UNCH at 4.38%
  • 10-yr: UNCH at 4.66%
  • 30-yr: UNCH at 5.19%