Bond Market Commentary

Over in bond land, Treasury yields are mostly higher before the opening bell Tuesday as the partial government shutdown continues. As of 6:58 AM ET, the yield on the 10-year note is unchanged at 4.28%, while the 30-year bond yield is increasing one basis point (0.01%) to 4.92%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is up one basis point (0.01%) to 3.58%. 

Treasury yields were higher on Monday as the Institute for Supply Management (ISM) manufacturing purchasing managers’ index (PMI) for January rose more than expected to 52.6, just the second expansionary reading in over three years and the strongest reading since August 2022. The yield on the 10-year note was up four basis points (0.04%) to 4.28%, while the 30-year bond yield also rose four basis points (0.04%) to 4.91%. The yield on the two-year note increased five basis points (0.05%) to 3.57%.

On the data front, the Job Openings and Labor Turnover Survey (JOLTS) report scheduled for release today is likely to be delayed due to the ongoing partial government shutdown. Total vehicle sales for January are expected to come in at a 15.21 million pace versus the prior month’s 16.02 million.

In the auction space, the U.S. Treasury is set to issue $90 billion in six-week bills.

In the central bank space, Federal Reserve (Fed) Vice Chair for Supervision Michelle Bowman and Richmond Fed President Tom Barkin are scheduled to speak today.

The Bloomberg 30-day visible supply rose $1.740 billion to $13.388 billion on Tuesday, below the 12-month average of $13.860 billion.

This information is obtained from sources and data considered to be reliable, but its accuracy and completeness is not guaranteed by Wells Fargo Advisors. Additional information available by request.

Wells Fargo Advisors is registered with the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, but is not licensed or registered with any financial services regulatory authority outside of the U.S. Non-U.S. residents who maintain U.S.-based financial services account(s) with Wells Fargo Advisors may not be afforded certain protections conferred by legislation and regulations in their country of residence in respect of any investments, investment transactions or communications made with Wells Fargo Advisors.

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.