Bond Market Update

Inching Higher

• U.S. Treasuries are on track for slightly higher start in longer tenors after yesterday's outperformance while shorter tenors are just behind. Treasury futures inched higher last evening, reaching their best levels around the start of the European session. The market found some pressure after the move, sliding to lows during the past four hours. The Secured Overnight Financing Rate dipped another two basis points to 4.16% and is now three basis points lower than it was a week ago. In Japan, Sanae Takaichi was elected prime minister by Japan's parliament, and she named Satsuki Katayama as her administration's finance minister. The overnight data flow was on the light side with no noteworthy releases expected during the U.S. session. Crude oil is on the rise while the U.S. Dollar Index is up 0.4% at 98.94.
• Yield Check:
  • 2-yr: UNCH at 3.46%
  • 3-yr: -1 bp to 3.46%
  • 5-yr: -1 bp to 3.57%
  • 10-yr: -1 bp to 3.98%
  • 30-yr: -1 bp to 4.57%

• News:
  • The U.S. and Canada are reportedly nearing a deal on aluminum, steel, and energy.
  • South Korea's exports through the first 20 days of October were down 8% yr/yr, though chip exports were up 20%.
  • British Chancellor Reeves repeated her pledge to meet fiscal rules while lowering the debt and deficit.
  • New Zealand's September trade deficit reached NZD1.355 bln (last deficit of NZD1.235 bln). September Credit Card Spending was up 0.2% yr/yr (last 3.3%).
  • U.K.'s September Public Sector Net Borrowing reached GBP20.20 bln (expected GBP20.70 bln; last GBP18.00 bln).
  • Swiss September trade surplus reached CHF4.073 bln (expected surplus of CHF5.22 bln; last surplus of CHF3.876 bln).
• Commodities:
  • WTI Crude: +0.7% to $57.92/bbl
  • Gold: -2.1% to $4269.20/ozt
  • Copper: -0.9% to $4.988/lb
• Currencies:
  • EUR/USD: -0.3% to 1.1613
  • GBP/USD: -0.2% to 1.3382
  • USD/CNH: UNCH at 7.1215
  • USD/JPY: +0.9% to 151.98
• No Data on Today's Schedule