Bond Market Update

Opening Losses Trimmed

• U.S. Treasuries have climbed off their early lows, but the entire complex remains firmly lower for the day. The lower start briefly lifted the 5-yr yield above its 50-day moving average (3.723%) in morning trade, but the recent bounce off lows pressured the 5-yr yield back below its 50-day average. The market showed no meaningful reaction to today's batch of economic data, which included slightly lower than expected weekly Initial Claims (213,000; Briefing.com consensus 216,000) and a preliminary Q4 Productivity report, which showed below-consensus productivity growth (2.8%; Briefing.com consensus 4.0%), coupled with above-consensus growth in unit labor costs (2.8%; Briefing.com consensus 0.2%). Equities are off to a lower start with the S&P 500 (-0.6%) trailing the Nasdaq (-0.4%).
• Yield Check:
  • 2-yr: +4 bps to 3.58%
  • 3-yr: +4 bps to 3.59%
  • 5-yr: +5 bps to 3.72%
  • 10-yr: +5 bps to 4.13%
  • 30-yr: +4 bps to 4.75%