Bond Market Update

10-yr yield at highs for session

• Buying efforts seen earlier in the wake of some weaker-than-expected retail sales data out of China have faded following the upbeat December S&P Global US Services PMI reading that showed an acceleration in activity in the nation's largest sector. 
• The 10-yr note yield is at its high for the day.
• The inkling for some is that the upbeat report could be chronicled by the Fed as a reason to temper its approach to removing policy restraint. That will be a 2025 issue, though. According to the CME FedWatch Tool, there is a 99.1% probability of a 25-basis points cut in the target range to 4.25-4.50% on December 18.
• Yield check:
  • 2-yr: unch at 4.24%
  • 3-yr: unch at 4.22%
  • 5-yr: +1 bp to 4.26%
  • 10-yr: +1 bp to 4.41%
  • 30-yr: unch at 4.62%