Bond Market Update

Post-NFP Gains Narrowed

• U.S. Treasuries trade in the green, though below their session highs that were reached in immediate reaction to the Employment Situation report for July, which showed the unexpected loss of 23,000 nonfarm payrolls (Briefing.com consensus 86,000) and sharp downward revisions to readings from May (to 66,000 from 129,000) and June (to 20,000 from 57,000). The post-data rally briefly pressured yields on 10s and shorter tenors to fresh lows for the week while the 30-yr yield stopped just shy of this week's low before the recent pullback commenced. Equities are off to a higher start with the S&P 500 (+0.5%) extending this week's gain to 3.5%.
• Yield Check:
  • 2-yr: -6 bps to 4.19%
  • 3-yr: -5 bps to 4.25%
  • 5-yr: -4 bps to 4.35%
  • 10-yr: -3 bps to 4.64%
  • 30-yr: -1 bp to 5.20%