Bond Market Update

Data Recon

• The September Trade Balance Report at 8:30 a.m. ET showed a widening in the trade deficit to $84.4 billion (Brieifng.com consensus -$74.0 billion) from a revised $70.8 billion (from -$70.4 billion) in August. That widening was the result of exports being $3.2 billion less than August exports and imports being $10.3 billion more than August imports.
  • The key takeaway from the report is that the imbalance between exports and imports is indicative of a U.S. economy that is running stronger than its global counterparts.
• Yield Check:
  • 2-yr: +1 bp to 4.19%
  • 3-yr: +1 bp to 4.16%
  • 5-yr: +2 bps to 4.19%
  • 10-yr: +2 bps to 4.33%
  • 30-yr: +1 bp to 4.50%