Bond Market Update

Data Recon

• Factory orders increased 5.0% month-over-month in July (Briefing.com consensus 4.5%) following a 3.3% decline in June. Excluding transportation, factory orders increased 0.4% on the heels of a 0.1% increase in June. Shipments of manufactured goods jumped 0.9% in July following a 0.6% increase in June.
  • The key takeaway from the report is that business spending languished in July.
• Yield Check:
  • 2-yr: -10 bps to 3.79%
  • 3-yr: -9 bps to 3.65%
  • 5-yr: -8 bps to 3.58%
  • 10-yr: -6 bps to 3.79%
  • 30-yr: -4 bps to 4.09%