Reply To: Bond Traders Weekly Outlook: Bond Markets Moving with Chaotic Trepidation


Early Bonds U.S. Treasuries trade on their highs after adding to their initial gains.

Treasuries extended opening gains shortly after the start while recent action saw another push that pressured yields to fresh lows for the day. Issues in the belly of the curve outperformed in the early going, and they remain a bit ahead at this juncture.

Economic data released this morning showed a much better than expected increase in the ADP Employment Change survey for April (actual 296,000; consensus 142,000) and an in-line uptick in the ISM Non-Manufacturing Index for April (actual 51.9%; consensus 51.9%; prior 51.2%).

On a separate note, The U.S. Treasury announced that auction sizes will be maintained in Q2, but these auctions may become upsized as soon as August. The Treasury also announced that it will begin a buyback program in 2024, aiming to improve liquidity.

Yield Check:
2-yr: -2 bps to 3.95%
3-yr: -4 bps to 3.65%
5-yr: -6 bps to 3.41%
10-yr: -5 bps to 3.39%
30-yr: -5 bps to 3.69%