Bond Market Update

Early Gains Padded

• U.S. Treasuries trade just above their starting levels after a cautious extension of their opening gains. Treasuries held their ground in immediate reaction to the Retail Sales report for August (1.2%; Briefing.com consensus 0.9%), which beat expectations despite concerns that high inflation would impact consumer spending. Treasuries extended their gains over the next hour, returning 5s and 10s to their closing levels from Monday. Equities are off to a mostly higher start with the Nasdaq (+0.6%) outpacing the S&P 500 (+0.3%).
• Yield Check:
  • 2-yr: -3 bps to 4.63%
  • 3-yr: -4 bps to 4.72%
  • 5-yr: -4 bps to 4.79%
  • 10-yr: -3 bps to 4.97%
  • 30-yr: -2 bps to 5.34%