Bond Market Update

Early Losses Widened

• U.S. Treasuries trade on their lows after slipping past their opening levels. The market attempted to recover from its lower start during the first few minutes of action, but resistance was found near yesterday's closing levels. With the recent slip to lows, the 10-yr yield is now just one basis point below its 50-day moving average (4.340%). Economic data released this morning included a disappointing Initial Claims report (235,000; Briefing.com consensus 222,000) and a weak Philadelphia Fed Survey (-0.3; Briefing.com consensus 9.0). However, flash Manufacturing PMI (53.3 from 49.8) showed a return to growth while Services PMI (55.4 from 55.7) showed slowing expansion.
• Yield Check:
  • 2-yr: +4 bps to 3.78%
  • 3-yr: +3 bps to 3.73%
  • 5-yr: +4 bps to 3.85%
  • 10-yr: +3 bps to 4.33%
  • 30-yr: +3 bps to 4.93%