Bond Market Update

Sideways Drift Continues

• U.S. Treasuries have seen very little intraday movement, which leaves the 10-yr note and shorter tenors right on their opening levels while the long bond outperforms slightly, though it too continues trading in the red. Today's session has not been too exciting, which has also been the case with equities, as the S&P 500 (-0.1%) continues drifting just below its unchanged level. The market received just one economic report today, but things will pick up tomorrow. July Durable Orders (Briefing.com consensus -3.5%; prior -9.3%) will be reported at 8:30 ET while the Consumer Confidence (Briefing.com consensus 96.3; prior 97.2) report for August will be released at 10:00 ET. The U.S. Treasury will kick off this week's note auction slate by selling $69 bln in 2-yr notes.
• Yield Check:
  • 2-yr: +4 bps to 3.73%
  • 3-yr: +4 bps to 3.68%
  • 5-yr: +3 bps to 3.79%
  • 10-yr: +2 bps to 4.28%
  • 30-yr: +1 bp to 4.90%