Bond Market Update

Data Recon

• New home sales increased 4.4% month-over-month in September to a seasonally adjusted annual rate of 738,000 units (Briefing.com consensus 713,000) from a downwardly revised 709,000 (from 716,000) in August. On a year-over-year basis, new home sales were up 6.3%.
  • The key takeaway from the report is that new home sales, which are tabulated when contracts are signed, likely enjoyed a tailwind from the drop in mortgage rates seen in September ahead of the FOMC decision, but with rates higher now than they were before the September 18 rate cut, it is reasonable to think October new home sales won't look as good.
• Yield Check:
  • 2-yr: -3 bps to 4.06%
  • 3-yr: -3 bps to 4.01%
  • 5-yr: -3 bps to 4.03%
  • 10-yr: -1 bp to 4.23%
  • 30-yr: -1 bp to 4.51%