Bond Market Update

Data Recon

• The Treasury Budget for October showed a deficit of $257.4 billion compared to a deficit of $66.6 billion in the same period a year ago. The October deficit resulted from outlays ($584.2 billion) exceeding receipts ($326.8 billion). The Treasury Budget data is not seasonally adjusted so the October deficit cannot be compared to the September surplus.
  • The key takeaway from the report is that the net interest outlay is running close to $1 trillion on an annualized basis.
• Yield Check:
  • 2-yr: -3 bps to 4.29%
  • 3-yr: -4 bps to 4.27%
  • 5-yr: -1 bp to 4.31%
  • 10-yr: +2 bps to 4.46%
  • 30-yr: +6 bps to 4.64%