Bond Market Update

Early Weakness Reversed

• U.S. Treasuries trade a bit above levels seen in our last update, but the climb has taken place at a slow pace, leaving 10s and 30s just below their unchanged levels. The steady showing has made for a good backdrop for Alphabet's (GOOG 326.44, +3.34, +1.03%) seven-tranche bond sale, which received over $100 bln in demand, according to Bloomberg. The sale included a British-pound denominated 100-year bond. On a separate note, the New York Fed released its Survey of Consumer Expectations for January, showing a dip in year-ahead inflation expectations to 3.1% (from 3.4%) while the three- and five-year expectations remained at 3.0%.
• Yield Check:
  • 2-yr: -1 bp to 3.49%
  • 3-yr: -1 bp to 3.56%
  • 5-yr: -1 bp to 3.75%
  • 10-yr: UNCH at 4.21%
  • 30-yr: +1 bp to 4.86%