Bond Market Update

Inching Higher

• U.S. Treasuries hold gains in most tenors after a slow rise off their opening levels. Treasuries started the day with slim losses, but they began rising shortly after the cash start. The advance has continued for the past two hours, but it has unfolded at a slow pace, which has the 10-yr yield down just one basis point while the 30-yr yield remains slightly higher for the day. The market did not receive the Personal Income/Outlays report for September, but it did get the Chicago PMI for October (43.8; Briefing.com consensus 42.0), which pointed to an ongoing contraction in the region's manufacturing sector. Equities are off to a higher start with the S&P 500 (+0.4%) padding this week's gain to 0.9%.
• Yield Check:
  • 2-yr: -1 bp to 3.60%
  • 3-yr: -2 bps to 3.59%
  • 5-yr: -2 bps to 3.70%
  • 10-yr: -1 bp to 4.08%
  • 30-yr: UNCH at 4.65%