Bond Market Update

Data Recon

• Initial jobless claims for the week ending December 27 decreased by 16,000 to 199,000 (Briefing.com consensus 226,000) from last week's revised rate of 215,000 (from 214,000), while continuing claims for the week ending December 20 decreased by 47,000 from last week's revised rate of 1.913 million (from 1.923 million) to 1.866 million.
  • The key takeaway from the report is that initial claims decreased unexpectedly, coming in below 200,000 for just the second time this year. This should be encouraging to a market that has grown more sensitive to signals from the labor market.
• Yield Check:
  • 2-yr: +2 bps to 3.47%
  • 3-yr: +2 bps to 3.53%
  • 5-yr: +2 bps to 3.70%
  • 10-yr: +2 bps to 4.15%
  • 30-yr: +1 bp to 4.83%