Bond Market Update

Data Recon

• Factory orders declined 3.3% month-over-month in June following a 0.5% decline in May. Excluding transportation, factory orders edged 0.1% higher on the heels of a 0.7% decline in May. Shipments of manufactured goods jumped 0.5% in June after declining 0.7% in May.
  • The key takeaway from the report is that the weakness in factory orders was not as pronounced as the headline suggests, as the weakness was driven by transportation equipment orders, which are notoriously volatile.
• Yield Check:
  • 2-yr: -25 bps to 3.91%
  • 3-yr: -23 bps to 3.74%
  • 5-yr: -20 bps to 3.65%
  • 10-yr: -16 bps to 3.82%
  • 30-yr: -13 bps to 4.15%