Bond Market Update

Data Recon

• Durable goods orders declined 1.1% month-over-month in November (Briefing.com consensus -0.3%) following an upwardly revised 0.8% increase (from 0.2%) in October. Excluding transportation, durable goods orders decreased 0.1% month-over-month (Briefing.com consensus 0.3%) following an upwardly revised 0.2% increase (from 0.1%) in October.
  • The key takeaway from the report is that it showed a rebound in business spending in November, evidenced by a 0.7% increase in new orders for nondefense capital goods excluding aircraft -- a proxy for business spending -- following a 0.1% decline in October.
• Yield Check:
  • 2-yr: +1 bp to 4.32%
  • 3-yr: +1 bp to 4.33%
  • 5-yr: +2 bps to 4.40%
  • 10-yr: +2 bps to 4.54%
  • 30-yr: +2 bps to 4.74%