Bond Market Update

Sitting On Lows

• U.S. Treasuries continue trading just above their lows that were reached about an hour ago. The trading day started with fresh August lows in yields on the 5-yr note and shorter tenors, but yields jumped after the July PPI report was much hotter than expected (0.9%; Briefing.com consensus 0.2%). The post-PPI retreat lifted yields back to their opening levels from yesterday while equities are facing some early pressure. The S&P 500 (-0.1%) hovers just below its flat line while small caps underperform with the Russell 2000 down 1.4% after showing strength earlier this week.
• Yield Check:
  • 2-yr: +3 bps to 3.72%
  • 3-yr: +3 bps to 3.69%
  • 5-yr: +3 bps to 3.80%
  • 10-yr: +3 bps to 4.27%
  • 30-yr: +2 bps to 4.85%