Bond Market Update

Data Recon

• The third estimate for Q4 GDP was revised up to 2.4% (Briefing.com consensus 2.3%) from 2.3%, aided by an upward revision for government spending. The Q4 GDP Price Deflator was revised down to 2.3% (Briefing.com consensus 2.4%) from 2.4%.
  • The key takeaway from the report is that it shows a nice expansion in activity during the fourth quarter that was underpinned by consumer spending; however, the report's impact on the market is muted by its dated nature (we're just days away from being done with the first quarter).
• Initial jobless claims for the week ending March 22 decreased 1,000 to 224,000 (Briefing.com consensus 225,000). Continuing jobless claims for the week ending March 15 decreased 25,000 to 1.856 million.
  • The key takeaway from the report is that initial jobless claims -- a leading indicator -- continue to idle at levels consistent with an otherwise solid labor market.
• Yield Check:
  • 2-yr: -3 bps to 3.99%
  • 3-yr: -1 bp to 3.99%
  • 5-yr: +1 bp to 4.10%
  • 10-yr: +2 bps to 4.36%
  • 30-yr: +3 bps to 4.72%