Bond Market Update

Data Recon

• The October ISM Manufacturing Index checked in at 48.7% for October (Briefing.com consensus: 49.4%), down from 49.1% in September. The dividing line between expansion and contraction is 50.0%, so the October figure, which is the eighth straight month below 50.0%, suggests manufacturing activity contracted at a faster pace than the prior month.
  • The key takeaway from the report is that the manufacturing sector saw its eighth consecutive month of contraction, with uncertainty about tariffs and the global economy tempering demand.
• Yield Check:
  • 2-yr: -2 bps to 3.59%
  • 3-yr: -2 bps to 3.59%
  • 5-yr: -1 bp to 3.70%
  • 10-yr: UNCH at 4.10%
  • 30-yr: +1 bp to 4.68%