Bond Market Update

Data Recon

• Existing home sales increased 4.8% month-over-month in November to a seasonally adjusted annual rate of 4.15 million (Briefing.com consensus 4.10 million) from an unrevised 3.96 million in October. Sales were up 6.1% from the same period a year ago, which was the largest increase since June 2021.
  • The key takeaway from the report is that it shows how lower mortgage rates can move the needle on existing home sales given the pent-up demand; however, with mortgage rates having risen noticeably again, expectations for continuing strength in existing home sales will be tempered by affordability concerns.
• Yield Check:
  • 2-yr: -4 bps to 4.31%
  • 3-yr: -1 bp to 4.33%
  • 5-yr: +3 bps to 4.41%
  • 10-yr: +7 bps to 4.56%
  • 30-yr: +9 bps to 4.75%