Bond Market Update

Opening Gains Narrowed

• U.S. Treasuries have spent the first couple hours of action in a retreat from their morning highs with issues in the belly giving back roughly half of their initial gains. The firmly higher open was owed to concerns about the competitiveness of U.S. chipmakers and companies that train AI models. These concerns are weighing on technology stocks, but the rest of the market is holding up relatively well, which is inviting some retracement in the initial rally in Treasuries. Not long ago, the market received the New Home Sales report for December (698,000; Briefing.com consensus 680,000), which beat estimates and included an upward revision to the November reading (to 674,000 from 664,000).
• Yield Check:
  • 2-yr: -4 bps to 4.23%
  • 3-yr: -5 bps to 4.28%
  • 5-yr: -6 bps to 4.37%
  • 10-yr: -6 bps to 4.56%
  • 30-yr: -5 bps to 4.80%