Bond Market Update

Data Recon

• Existing home sales decreased 2.5% month-over-month in August to a seasonally adjusted annual rate of 3.86 million (Briefing.com consensus 3.90 million) from an upwardly revised 3.96 million (from 3.95 million) in July. Sales were down 4.2% 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.
• The Leading Economic Index for August declined 0.2% (Briefing.com consensus -0.3%) following a 0.6% decline in July. That was the sixth consecutive monthly decline.
• Yield check:
  • 2-yr: -1 bp to 3.59%
  • 3-yr: +1 bp to 3.48%
  • 5-yr: +2 bps to 3.49%
  • 10-yr: +4 bps to 3.73%
  • 30-yr: +5 bps to 4.06%