Bond Market Update

Opening Gains Maintained

• U.S. Treasuries continue hovering near their starting levels despite a barrage of economic data. The market's reaction suggests that there were no meaningful surprises in the data set, which included in-line Personal Income growth for June (0.3%; prior -0.4%) and slightly hotter than expected Employment Cost Index for Q1 (0.9%; Briefing.com consensus 0.8%). Initial jobless claims increased slightly from last week (to 218,000 from 217,000) after six consecutive week-over-week decreases. Equities started the day on a firmly higher note thanks to post-earnings leadership from mega caps Microsoft (MSFT 538.02, +24.78, +4.8%) and Meta Platforms (META 781.76, +86.55, +12.5%).
• Yield Check:
  • 2-yr: -1 bp to 3.93%
  • 3-yr: -2 bps to 3.87%
  • 5-yr: -2 bps to 3.94%
  • 10-yr: -3 bps to 4.34%
  • 30-yr: -4 bps to 4.87%