Bond Market Update

Opening Gains Extended

• U.S. Treasuries hover just below their best levels of the session after an upbeat start. Treasuries started the day in positive territory, extending to highs after the Personal Income/Outlays report for August showed cooler than expected Personal Income (0.2%; Briefing.com consensus 0.4%) and Personal Spending (0.2%; Briefing.com consensus 0.3%) growth while the core PCE Price Index (0.1%; Briefing.com consensus 0.2%) was a touch cooler than expected. However, the yr/yr PCE Price growth rate still edged up to 2.7% from 2.6% in July. Thanks to the post-data advance, Treasuries have recovered the bulk of this week's losses with the 2-yr yield currently up one basis point since last Friday while the 10-yr yield is up three basis points for the week.
• Yield Check:
  • 2-yr: -4 bps to 3.58%
  • 3-yr: -4 bps to 3.50%
  • 5-yr: -4 bps to 3.52%
  • 10-yr: -4 bps to 3.76%
  • 30-yr: -3 bps to 4.09%