Bond Market Update

Data Recon

• The trade deficit was $59.6 billion in August (Briefing.com consensus: -$61.0 billion) versus a downwardly revised $78.2 billion (from $78.3 billion) in July. That was the result of exports being $0.2 billion more than July exports and imports being $18.4 billion less than July imports.
  • The key takeaway from the report is that it will factor favorably into the Q3 GDP report, given the positive contribution from the net export component.
• Yield Check:
  • 2-yr: -1 bp to 3.57%
  • 3-yr: -2 bps to 3.56%
  • 5-yr: -1 bp to 3.68%
  • 10-yr: -1 bp to 4.11%
  • 30y-yr: -1 bp to 4.73%