Bond Market Update

Data Recon

• The trade deficit narrowed to $70.4 billion in August (Briefing.com consensus -$71.3 billion) from a downwardly revised $78.9 billion (from -$78.8 billion) in July. The improvement was the result of exports being $5.3 billion more than July exports and imports being $3.2 billion less than July imports.
  • The key takeaway from the report is that the net exports component for August will be a positive input for Q3 GDP forecasts.
• Yield Check:
  • 2-yr: -2 bps to 3.98%
  • 3-yr: -1 bp to 3.89%
  • 5-yr: UNCH at 3.87%
  • 10-yr: +1 bp to 4.04%
  • 30-yr: +2 bps to 4.33%