Bond Market Update

Staying in the Red

• Recent action saw the Treasury complex inch down from today's rebound highs, though the move has not been too aggressive, which leaves Treasuries just above their starting levels. Intraday action has unfolded in fairly quiet fashion after yesterday's hawkish rate cut from the FOMC. Treasuries climbed off their lows as equities struggled at the start, but they have faced some renewed pressure recently as stocks fight to stay above their session lows. The market was scheduled to receive the advance reading of Q3 GDP this morning, but that report was not released due to the ongoing government shutdown, which will also be the case with the Q3 Employment Cost Index and the Personal Income/Outlays report for September. These reports were scheduled for a Friday morning release, but they will not come out tomorrow.
• Yield Check:
  • 2-yr: +3 bps to 3.61%
  • 3-yr: +2 bps to 3.61%
  • 5-yr: +2 bps to 3.72%
  • 10-yr: +4 bps to 4.09%
  • 30-yr: +4 bps to 4.64%