Bond Market Update

Data Recon

• Total housing starts in June increased 3.0% month-over-month from a depressed base to a seasonally adjusted annual rate of 1.353 million (Briefing.com consensus 1.310 million); however, single-unit starts were down 2.2%. Total building permits jumped 3.4% month-over-month to a seasonally adjusted annual rate of 1.446 million (Briefing.com consensus 1.391 million); however, permits for single units -- a leading indicator -- were down 2.3%.
  • The key takeaway from the report is that, while it might have been better than expected relative to consensus estimates, it was not a strong report nor a particularly encouraging report for an inventory-constrained housing market in need of lower-priced, single-family homes.
• Yield Check:
  • 2-yr: +3 bps to 4.47%
  • 3-yr: +2 bps to 4.23%
  • 5-yr: +2 bps to 4.11%
  • 10-yr: +1 bp to 4.18%
  • 30-yr: +1 bp to 4.38%