Bond Market Update

Opening Range Maintained

• U.S. Treasuries continue hovering near their starting levels with the belly a bit behind. Treasuries added to their initial losses during the first few minutes of action, but bounced off lows after today's initial batch of data included the preliminary Productivity report for Q1 (-0.8%; Briefing.com consensus -0.4%), which showed a larger-than-expected decrease in productivity, coupled with a bigger-than-expected increase in Unit Labor Costs (5.7%; Briefing.com consensus 4.0%). The release of the report was followed by news that President Trump's trade deal announcement with the U.K. will be limited in scope and the 10% universal tariff will remain in place.
• Yield Check:
  • 2-yr: +3 bps to 3.82%
  • 3-yr: +4 bps to 3.80%
  • 5-yr: +4 bps to 3.91%
  • 10-yr: +3 bps to 4.30%
  • 30-yr: +1 bp to 4.79%