Bond Market Update

Opening Range Maintained

• U.S. Treasuries continue trading near their opening levels despite a torrent of economic releases over the past two hours. The short end outperformed at the start and the 2-yr note remains ahead, sitting just above its starting mark while the 10-yr note and the 30-yr bond hover just below their opening levels. Today's batch of data was pretty solid with July Retail Sales (0.5%; Briefing.com consensus 0.5%) reassuring the market about the strength of the consumer while Industrial Production (-0.1%; Briefing.com consensus -0.1%) decreased slightly in July, but that was expected. Reported not long ago, the preliminary reading of the University of Michigan's Consumer Sentiment Index for August fell to 58.6 (Briefing.com consensus 61.3) from 61.7 in July. Inflation expectations increased notably with the one-year outlook jumping to 4.9% from 4.5% while the five-year outlook increased to 3.9% from 3.4%.
• Yield Check:
  • 2-yr: -1 bp to 3.73%
  • 3-yr: -1 bp to 3.69%
  • 5-yr: UNCH at 3.82%
  • 10-yr: +1 bp to 4.30%
  • 30-yr: +2 bps to 4.90%