Bond Market Update

Data Recon

• The ISM Services PMI decreased to 50.0% in September (Briefing.com consensus 51.7%) from 52.0% in August. The dividing line between expansion and contraction is 50.0%, so the September reading reflects services sector activity stagnating.
  • The key takeaway from the report is that it carries some stagflation messaging for the nation's largest business sector: no growth, contracting employment, and higher inflation.
• Yield Check:
  • 2-yr: +2 bps to 3.57%
  • 3-yr: +2 bps to 3.58%
  • 5-yr: +3 bps to 3.70%
  • 10-yr: +3 bps to 4.11%
  • 30-yr: +1 bp to 4.71%