Bond Market Update

Short End Maintains Lead

• U.S. Treasuries trade in mixed fashion with the 5-yr note and shorter tenors hanging onto their early gains while 10s and 30s hover just below their flat lines. The early part of the Monday session has been quiet with Treasuries drifting in a sideways range. Treasuries climbed above their starting levels alongside a mixed open in equities, which has the S&P 500 (+0.1%) holding a modest gain while the Dow (-0.4%) underperforms. Economic data released this morning included a flash November Manufacturing PMI (52.5) that pointed to an ongoing expansion while the ISM Manufacturing Index (48.7%; Briefing.com consensus 49.4%) headed in the opposite direction, showing a deepening contraction.
• Yield Check:
  • 2-yr: -2 bps to 3.59%
  • 3-yr: -1 bp to 3.60%
  • 5-yr: -1 bp to 3.71%
  • 10-yr: UNCH at 4.10%
  • 30-yr: +1 bp to 4.68%