Bond Market Update

Long End Maintains Early Strength

• U.S. Treasuries are mixed after a sideways start to the cash session. Treasuries opened the day with modest gains, but quickly slid to lows once the market received today's initial batch of data, which included below-consensus Retail Sales for February (0.2%; Briefing.com consensus 0.7%) and an Empire State Manufacturing Survey (-20.0; Briefing.com consensus 2.0), which missed expectations, but also showed an increase in prices paid and price received, fueling inflationary concerns. Treasuries quickly bounced off their post-data lows with 10s and 30s turning positive while shorter tenors are down modestly. Equities are off to a higher start with the S&P 500 (+0.5%) outpacing the Nasdaq (+0.3%).
• Yield Check:
  • 2-yr: +2 bps to 4.04%
  • 3-yr: +2 bps to 4.02%
  • 5-yr: +1 bp to 4.09%
  • 10-yr: -1 bp to 4.30%
  • 30-yr: -2 bps to 4.60%