Bond Market Update

Opening Losses Narrowed

• U.S. Treasuries remain in the red, though the first couple hours of action have seen a steady rise off opening lows. Longer tenors underperformed at the start, and they remain behind, but the entire complex has shown early resilience alongside a weak open in equities. The market received today's batch of economic data not long ago, which showed an improvement in the ISM Manufacturing Index for August (48.7%; Briefing.com consensus 48.6%; prior 48.0%), though it remained in contractionary territory. Separately, the final reading of the S&P Global U.S. Manufacturing PMI was revised down to 53.0 from 53.3 in the preliminary reading, though it was above July's final reading of 49.8. Lastly, Construction Spending was down 0.1% in July (Briefing.com consensus 0.2%; prior -0.4%).
• Yield Check:
  • 2-yr: +2 bps to 3.64%
  • 3-yr: +2 bps to 3.61%
  • 5-yr: +3 bps to 3.73%
  • 10-yr: +3 bps to 4.26%
  • 30-yr: +4 bps to 4.96%