Bond Market Update

Data Recon

• Existing home sales increased 1.3% month-over-month in July to a seasonally adjusted annual rate of 3.95 million (Briefing.com consensus 3.90 million) from an upwardly revised 3.90 million (from 3.89 million) in June. Sales were down 2.5% from the same period a year ago.
  • The key takeaway from the report is that more inventory is becoming available with mortgage rates dropping, yet it is still a tight market, evidenced by the ongoing increase in the median home price.
• Yield Check:
  • 2-yr: +7 bps to 3.99%
  • 3-yr: +7 bps to 3.80%
  • 5-yr: +7 bps to 3.71%
  • 10-yr: +7 bps to 3.85%
  • 30-yr: +7 bps to 4.12%