Bond Market Update

Early Losses Widened

• U.S. Treasuries trade near their lowest levels of the session after a failed bounce attempt during the first few minutes of today's action. Treasuries followed their lower start with a brief bounce attempt that ran into resistance well before Treasuries reached their closing levels from Tuesday. Recent trade has seen some renewed selling with 5s and shorter tenors hitting lows in immediate reaction to the February ISM Services Index (56.1%; Briefing.com consensus 53.9%), which beat expectations by a solid margin, reflecting accelerating growth in the services sector. Equities are off to a higher start with the S&P 500 (+0.5%) trimming this week's loss to 0.4%.
• Yield Check:
  • 2-yr: +3 bps to 3.53%
  • 3-yr: +3 bps to 3.54%
  • 5-yr: +4 bps to 3.67%
  • 10-yr: +3 bps to 4.09%
  • 30-yr: +2 bps to 4.73%