Bond Market Update

Longer Tenors Turn Lower

• U.S. Treasuries trade on their lows, though early action has unfolded inside a narrow range even though the market received a full slate of data shortly after the cash start. The batch showed an increase in weekly jobless claims to 219,000 from 203,000 (Briefing.com consensus 215,000), a downward revision to Q4 GDP to 0.5% from 0.7% (Briefing.com consensus 0.7%), and a disappointing Personal Income/Outlays report for February. That report revealed a drop in Personal Income (-0.1%; Briefing.com consensus 0.5%) and only a slight deceleration in the core PCE Price Index (to 3.0% from 3.1%). Treasuries held their ground in immediate reaction to the data, slipping to lows as equities dipped out of the gate.
• Yield Check:
  • 2-yr: UNCH at 3.79%
  • 3-yr: UNCH at 3.81%
  • 5-yr: +1 bp to 3.93%
  • 10-yr: +2 bps to 4.31%
  • 30-yr: +2 bps to 4.91%