Bond Market Update

Data Recon

• Housing starts decreased 0.5% month-over-month to a seasonally adjusted annual rate of 1.354 million units (Briefing.com consensus 1.350 million), though single-unit starts increased 2.7% month-over-month. Building permits decreased 2.9% month-over-month to a seasonally adjusted annual rate of 1.428 million (Briefing.com consensus 1.455 million) while single-unit permits were up 0.3%.
  • The key takeaway from the report is that the change single-unit starts and permits varied across regions after showing across-the-board growth in August.
• Yield Check:
  • 2-yr: -2 bps to 3.96%
  • 3-yr: -3 bps to 3.87%
  • 5-yr: -2 bps to 3.89%
  • 10-yr: -2 bps to 4.08%
  • 30-yr: -1 bp to 4.38%