Bond Market Update

Data Recon

• Housing starts increased 9.6% month-over-month to a seasonally adjusted annual rate of 1.356 million units (Briefing.com consensus 1.320 million), bolstered by a 15.8% increase in single-unit starts. Building permits increased 4.9% month-over-month to a seasonally adjusted annual rate of 1.475 million (Briefing.com consensus 1.415 million), aided by a 2.8% increase in single-unit permits.
  • The key takeaway from the report is that single-unit starts and permits were up in every region, reflecting increased activity among builders that has been facilitated by sliding interest rates and pent-up demand.
• Yield Check:
  • 2-yr: +4 bps to 3.63%
  • 3-yr: +4 bps to 3.49%
  • 5-yr: +5 bps to 3.48%
  • 10-yr: +4 bps to 3.68%
  • 30-yr: +4 bps to 3.99%