Bond Market Update

Slide Extended

• U.S. Treasuries have had a rough start to the Thursday session with early weakness producing fresh 2026 highs in yields on all tenors with the 10-yr yield peaking just seven basis points below its high from October 2023 (4.997%). Treasuries followed their lower start with an extension of their losses after the PPI report for August (0.4%; Briefing.com consensus 0.4%) matched headline expectations and was slightly cooler-than-expected at the core level (0.2%; Briefing.com consensus), but upward revisions to readings from July worsened the quality of the report, and boosted expectations for a rate hike next week. The past few minutes have seen a bounce that returned the 30-yr yield to its opening level while yields on shorter tenors remain closer to their highs. Equities are off to a lower start with the S&P 500 (-0.4%) widening this week's loss to 1.5%.
• Yield Check:
  • 2-yr: +9 bps to 4.52%
  • 3-yr: +10 bps to 4.62%
  • 5-yr: +9 bps to 4.71%
  • 10-yr: +8 bps to 4.91%
  • 30-yr: +5 bps to 5.33%