Bond Market Update

Data Recon

• Factory orders increased 0.2% month-over-month in September (Briefing.com consensus 0.2%) after rising a revised 1.3% (from 1.4%) in August. Excluding transportation, factory orders also increased 0.2% after dipping a revised 0.1% (from +0.1%) in August. Shipments of manufactured goods were unchanged after decreasing a revised 0.3% in August (from -0.1%).
  • The key takeaway from the report is that orders increased again in September despite a big jump in August with new orders for nondefense capital goods excluding aircraft, which is a proxy for business spending, jumping 0.9% for the second month in a row.
• Yield Check:
  • 2-yr: +3 bps to 3.52%
  • 3-yr: +4 bps to 3.54%
  • 5-yr: +5 bps to 3.67%
  • 10-yr: +4 bps to 4.10%
  • 30-yr: +3 bps to 4.76%