Bond Market Update

Data Recon

• The ISM Non-Manufacturing Index rose to 51.4% in July (Briefing.com consensus 51.3%) from 48.8% in June. The dividing line between expansion and contraction is 50.0%, so the July reading reflects services sector activity expanding after two contractions over the previous three months.
  • The key takeaway from the report is that overall activity in the largest sector of the U.S. economy rebounded strongly with Indices for Business Activity and Employment jumping back into expansionary territory after contracting in June.
• Yield Check:
  • 2-yr: -5 bps to 3.82%
  • 3-yr: -5 bps to 3.65%
  • 5-yr: -4 bps to 3.72%
  • 10-yr: -4 bps to 3.75%
  • 30-yr: -5 bps to 4.06%