Bond Market Commentary

Over in bond land, Treasury yields are mostly higher before the opening bell Thursday ahead of today’s update on unemployment claims and tomorrow’s jobs report for November. As of 6:49 AM ET, the yield on the 10-year note is rising two basis points (0.02%) to 4.20%, while the 30-year bond yield is unchanged at 4.35%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is up two basis points (0.02%) to 4.14%.

Treasury yields were lower on Wednesday as the Institute for Supply Management’s services purchasing managers’ index eased more than forecasted in November, though remained in expansionary territory. The yield on the 10-year note was down five basis points (0.05%) to 4.18%, while the 30-year bond yield fell six basis points (0.06%) to 4.35%. The yield on the two-year note decreased five basis points (0.05%) to 4.12%.

On the data front, initial jobless claims for the week ending November 30 are expected to come in at 215,000, up from the prior week’s 213,000, while continuing claims for the week ending November 23 are expected to tick down to 1.90 million from the prior week’s 1.91 million. The U.S. trade deficit is expected to narrow in October to $75 billion from the prior month’s $84.4 billion.

In the auction space, the U.S. Treasury is set to issue $85 billion in four-week bills and $80 billion in eight-week bills.

In the central bank space, Richmond Federal Reserve President Tom Barkin is scheduled to speak today.

The Bloomberg 30-day visible supply fell $2.836 billion to $14.301 billion on Wednesday—compared to the 12-month average of $11.243 billion.

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