Bond Market Update

Data Recon

• Existing home sales increased 4.2% month-over-month in February to a seasonally adjusted annual rate of 4.26 million (Briefing.com consensus 3.95 million) from an upwardly revised 4.09 million (from 4.08 million) in January. Sales were down 1.2% from the same period a year ago.
  • The key takeaway from the report is that existing home sales actually increased, as the consensus estimate called for a 3.2% month-over-month decline. The surprising strength suggests some unleashing of pent-up demand with more inventory on the market and prospective buyers adjusting to the higher level of mortgage rates.
• Yield Check:
  • 2-yr: -3 bps to 3.95%
  • 3-yr: -3 bps to 3.93%
  • 5-yr: -4 bps to 3.99%
  • 10-yr: -5 bps to 4.21%
  • 30-yr: -5 bps to 4.52%