Bond Market Update

Opening Gains Extended

• U.S. Treasuries have added to their starting gains with longer tenors maintaining their slight early lead. The modestly higher start faced some early resistance after the latest jobless claims report showed a dip (to 227,000 from 232,000) that was bigger than expected (Briefing.com consensus 230,000). However, the early backtracking found support quickly with the 10-yr note and shorter tenors rising past their starting highs in recent trade, just as the market received a below-consensus Existing Home Sales (3.91 mln; Briefing.com consensus 4.21 mln; prior 4.35 mln) report for January. Equities are off to a mixed start with the S&P 500 (+0.2%) holding a modest gain while the Nasdaq (-0.2%) lags.
• Yield Check:
  • 2-yr: -2 bps to 3.49%
  • 3-yr: -3 bps to 3.54%
  • 5-yr: -3 bps to 3.71%
  • 10-yr: -3 bps to 4.15%
  • 30-yr: -4 bps to 4.78%