Bonds Surge Following Spike In Claims
The bond market surged following this morning’s weaker than expected data (GDP) which include a 448k increase in weekly jobless claims. The 30yr jumped over 1% instantly and continues to maintain post-data levels and is currently yielding 4.58%.
The 10yr shared a similar spike and is maintaining support in the upper portion of today’s range with its yield now just below 4%. The 5yr is up 0.44% with a yield of 3.27% and the 2yr is up 0.2% with a yield of 2.53%.
Further-dated Fed fund futures also surged following the morning data and now show a 29% chance of a September Fed rate hike from 36% yesterday.
The short end the curve is moderately higher with the 4week bill yield off 3bps to 1.62%, the 3month bill yield down 1bp at 1.68% and the 6month bill yield down 3bps to 1.86%.