Bond Market Update

Data Recon

• New orders for manufactured durable goods increased 0.9% month-over-month in February (Briefing.com consensus -1.2%) following an upwardly revised 3.3% (from 3.1%) for January. Excluding transportation, durable goods orders rose 0.7% month-over-month (Briefing.com consensus 0.1%) following an upwardly revised 0.1% increase (from 0.0%) in January.
  • The key takeaway from the report is that durable goods orders were stronger than expected; however, that understanding was diluted by the added realization that there was a downturn in business spending, evidenced by the 0.3% decline in nondefense capital goods orders, excluding aircraft.
• Yield Check:
  • 2-yr: +1 bp to 4.01%
  • 3-yr: +3 bps to 4.01%
  • 5-yr: +4 bps to 4.09%
  • 10-yr: +4 bps to 4.35%
  • 30-yr: +4 bps to 4.70%