Bond Market Update

Data Recon

• Total retail sales increased 0.1% month-over-month in May (Briefing.com consensus 0.3%) following a downwardly revised 0.2% decline (from 0.0%) in April. Excluding autos, retail sales declined 0.1% month-over-month in May (Briefing.com consensus 0.2%) following a downwardly revised 0.1% decline (from 0.2%) in April.
  • The key takeaway from the report is that it reflects some slowing in consumer spending on goods that will be accounted for in weaker Q2 real GDP forecasts.
• Yield Check:
  • 2-yr: -5 bps to 4.71%
  • 3-yr: -5 bps to 4.45%
  • 5-yr: -4 bps to 4.26%
  • 10-yr: -3 bps to 4.25%
  • 30-yr: -2 bps to 4.39%