Bond Market Update

Long End Bounces

• U.S. Treasuries continue trading on a mostly lower note with shorter tenors showing relative weakness while the long bond outperforms, having returned to its unchanged level. Treasuries notched session lows at the open, followed by a steady bounce, which reached highs as equities stumbled out of the gate with the S&P 500 (-0.1%) showing a modest loss while the Nasdaq (+0.2%) outperforms. Reported not long ago, the Chicago PMI hit 46.6 in September (Briefing.com consensus 46.2), which was better than expected, but still showed a contraction in activity.
• Yield Check:
  • 2-yr: +4 bps to 3.60%
  • 3-yr: +4 bps to 3.52%
  • 5-yr: +3 bps to 3.53%
  • 10-yr: +1 bp to 3.76%
  • 30-yr: UNCH at 4.10%