Bond Market Update

Defending Early Gains

• U.S. Treasuries have spent the first couple hours of action in a sideways range, defending their slim starting gains. Today's modestly higher open ran into immediate resistance, which briefly returned 10s and 30s to yesterday's closing levels, but there was no follow through selling. Instead, Treasuries have spent the better part of the past 90 minutes hanging onto slight gains while crude oil has dipped below $90/bbl. Today's ADP Employment Change report (38,000; Briefing.com consensus 47,000) showed slightly weaker-than-expected growth in August ahead of Friday's release of the official Employment Situation report from the BLS, while Factory Order growth (0.9%; Briefing.com consensus 0.6%; prior -0.2%) beat July expectations. Equities are off to a higher start, looking to recover some of their losses from the past two days with the S&P 500 up 0.4%.
• Yield Check:
  • 2-yr: -1 bp to 4.38%
  • 3-yr: -1 bp to 4.45%
  • 5-yr: -1 bp to 4.55%
  • 10-yr: -1 bp to 4.79%
  • 30-yr: -1 bp to 5.26%