Bond Market Update

Data Recon

• There was a muted reaction to the revised Q3 Productivity Report, which showed no change from the preliminary estimate of 2.2% (Briefing.com consensus 2.2%). Unit labor costs, however, were revised down to 0.8% (Briefing.com consensus 1.9%) from the preliminary estimate of 1.9% based on an equivalent downward revision to hourly compensation.
  • The key takeaway from the report is the inflation-friendly indicator of unit labor costs rising in more modest proportions in the third quarter.
• Yield Check:
  • 2-yr: +1 bp to 4.14%
  • 3-yr: +1 bp to 4.10%
  • 5-yr: +2 bps to 4.09%
  • 10-yr: +3 bps to 4.23%
  • 30-yr: +3 bps to 4.42%