Bond Market Update

Opening Gains Trimmed

• U.S. Treasuries trade a bit below their opening levels after finding some early resistance. The market built on its higher start in reaction to today's economic data, which included cooler-than-expected PPI for May (0.1%; Briefing.com consensus 0.2%) and a jobless claims report that showed a big jump in continuing claims (to 1.956 million from 1.902 million) to a level not seen since 2021. The post-data advance sent the 30-yr yield back to its 50-day moving average (4.840%), where the market found resistance. The 10-yr yield, meanwhile, briefly slipped below the 50-day moving average of its own (4.369%) before rising back above that mark as Treasuries reversed from highs. Equities are off to muted start in the S&P 500 (+0.1%) while small caps lag in early trade with the Russell 2000 falling 0.4%.
• Yield Check:
  • 2-yr: -3 bps to 3.91%
  • 3-yr: -4 bps to 3.87%
  • 5-yr: -4 bps to 3.97%
  • 10-yr: -3 bps to 4.38%
  • 30-yr: -3 bps to 4.87%