Bond Market Update

Data Recon

• New home sales decreased 10.5% month-over-month in January to a seasonally adjusted annual rate of 657,000 units (Briefing.com consensus 681,000) from an upwardly revised 734,000 (from 698,000) in December. On a year-over-year basis, new home sales were down 1.1%.
  • The key takeaway from the report is that new home sales in January felt the brunt of affordability constraints that were tightened by elevated mortgage rates and higher prices.
• Yield Check:
  • 2-yr: +3 bps to 4.3%
  • 3-yr: +2 bps to 4.11%
  • 5-yr: +1 bp to 4.15%
  • 10-yr: +1 bp to 4.31%
  • 30-yr: UNCH at 4.56%