Bond Market Update

Data recon

• Total construction spending was unchanged month-over-month in November (Briefing.com consensus 0.2%) following an upwardly revised 0.5% increase (from 0.4%) in October. Total private construction was up 0.1% month-over-month while total public construction declined 0.1% month-over-month. On a year-over-year basis, total construction spending was up 3.0%.
  • The key takeaway from the report is that there wasn't much impulse for construction spending in November, particularly on the nonresidential side of things.
• Yield check:
  • 2-yr: -2 bps to 4.22%
  • 3-yr: -2 bps to 4.25%
  • 5-yr: -3 bps to 4.35%
  • 10-yr: -4 bps to 4.53%
  • 30-yr: -2 bps to 4.76%