Bond Market Update

Data Recon

• New home sales declined 4.7% month-over-month in August to a seasonally adjusted annual rate of 716,000 units (Briefing.com consensus 695,000) from an upwardly revised 751,000 (from 739,000) in July. On a year-over-year basis, new home sales were up 9.8%.
  • The key takeaway from the report is that new home sales, which are tabulated when contracts are signed, were better than expected in August, aided by lower pricing and sliding mortgage rates. Notably, the South was the only region that saw a pickup in sales month-to-month.
• Yield Check:
  • 2-yr: UNCH at 3.55%
  • 3-yr: +3 bps to 3.48%
  • 5-yr: +4 bps to 3.52%
  • 10-yr: +4 bps to 3.78%
  • 30-yr: +4 bps to 4.13%