Bond Market Update

Data Recon

• The Treasury Budget for November showed a deficit of $366.8 billion compared to a deficit of $314.0 billion in the same period a year ago. The November deficit resulted from outlays ($668.5 billion) exceeding receipts ($301.8 billion). The Treasury Budget data are not seasonally adjusted so the November deficit cannot be compared to the October deficit of $257.5 billion.
  • The key takeaway from the report is its worsening condition, which was driven in part by a large outlay for net interest that exceeded the outlay for national defense.
• Yield Check:
  • 2-yr: +1 bp to 4.16%
  • 3-yr: +2 bps to 4.13%
  • 5-yr: +4 bps to 4.14%
  • 10-yr: +5 bps to 4.28%
  • 30-yr: +7 bps to 4.48%