Bond Market Update

Modest Losses Maintained

• U.S. Treasuries remain at their lowest levels of the morning after a failed rebound attempt. Treasuries started the day in the red, but they tried to bounce about 30 minutes after the cash start. That bounce met resistance shortly after the complex turned positive for the day and was followed by a return to lows. The long-delayed Personal Income/Outlays report for September was released not long ago, but there was essentially no reaction. The report showed in-line Personal Income growth (0.4%) while Personal Spending growth (0.3%; Briefing.com consensus 0.4%) was below expectations. Core PCE Price growth (0.2%; Briefing.com consensus 0.3%) was also cooler than expected. Separately, the preliminary reading of the December Consumer Sentiment Index from the University of Michigan (53.3; Briefing.com consensus 52.0) was a bit better than expected.
• Yield Check:
  • 2-yr: +1 bp to 3.54%
  • 3-yr: +1 bp to 3.56%
  • 5-yr: +1 bp to 3.69%
  • 10-yr: +1 bp to 4.12%
  • 30-yr: +1 bp to 4.78%