Bond Market Update

Sitting on Lows

• U.S. Treasuries trade just above session lows that were reached during the past 90 minutes of action. Treasuries have followed two days of sideways action with a midweek retreat that has been assisted by the release of generally positive economic data and news from the U.S. Treasury that a future increase to note and bond auction sizes is being considered, though no immediate changes were announced. The U.S. Treasury will sell $125 bln in notes and bonds, starting with a $58 bln 3-yr note auction on Monday, followed by a $42 bln 10-yr note sale on Wednesday, and a $25 bln 30-yr bond offering on Thursday.
• Yield Check:
  • 2-yr: +4 bps to 3.62%
  • 3-yr: +5 bps to 3.64%
  • 5-yr: +6 bps to 3.76%
  • 10-yr: +6 bps to 4.15%
  • 30-yr: +7 bps to 4.74%