Bond Market Commentary

Over in bond land, Treasury yields are mostly unchanged before the opening bell Monday. Investors continue to watch for any news on a possible resolution to the ongoing U.S. government shutdown and are also looking ahead to this week’s preliminary October purchasing managers’ indexes and September Consumer Price Index, both scheduled for release on Friday. As of 6:49 AM ET, the yield on the 10-year note is unchanged at 4.01%, while the 30-year bond yield is also unchanged at 4.61%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is up one basis point (0.01%) to 3.47%.

Treasury yields were higher on Friday as concerns about U.S. banks eased. The yield on the 10-year note was up four basis points (0.04%) to 4.01%, while the 30-year bond yield rose three basis points (0.03%) to 4.61%. The yield on the two-year note increased four basis points (0.04%) to 3.46%.

On the data front, the Conference Board’s Leading Index for September has been delayed due to the lack of available government data following the U.S. shutdown.

Mortgage rates were lower in the latest week. For the week ending October 16, the average 30-year fixed mortgage rate was down three basis points (0.03%) to 6.27%, versus 6.44% a year ago. The 15-year fixed mortgage rate decreased one basis point (0.01%) to 5.52%, versus 5.63% a year ago.

The Bloomberg 30-day visible supply fell $1.208 billion to $18.786 billion on Friday, above the 12-month average of $13.736 billion.

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