Bond Market Update

Opening Gains Reversed

• U.S. Treasuries trade in the red after a swift retreat from their opening highs. The cash session started with modest gains in the 10-yr note and shorter tenors, but the entire complex began facing pressure immediately after the start. Treasuries turned lower after today's first batch of data showed strong ADP Employment growth for March (62,000; Briefing.com consensus 42,000) and an above-consensus February Retail Sales (0.6%; Briefing.com consensus 0.5%). The market is holding just above lows in immediate reaction to the March ISM Manufacturing Index (52.7%; Briefing.com consensus 52.3%), which also beat expectations. Equities are off to a higher start with the S&P 500 (+0.7%) trailing the Nasdaq (+1.1%).
• Yield Check:
  • 2-yr: +1 bp to 3.81%
  • 3-yr: +1 bp to 3.83%
  • 5-yr: +1 bp to 3.96%
  • 10-yr: +1 bp to 4.32%
  • 30-yr: +2 bps to 4.91%