Bond Market Update

Data Recon

• Factory orders rose 0.6% month-over-month in February (Briefing.com consensus 0.4%) after increasing an upwardly revised 1.8% (from 1.7%) in January. Excluding transportation, factory orders were up 0.4% after increasing 0.3% in January. Shipments of manufactured goods were up 1.2% after increasing 0.7% in January.
  • The key takeaway from the report is that new orders for nondefense capital goods excluding aircraft, which are considered a proxy for business spending, decreased 0.2% despite the headline beat.
• Yield Check:
  • 2-yr: +2 bps to 3.88%
  • 3-yr: UNCH at 3.85%
  • 5-yr: UNCH at 3.91%
  • 10-yr: -1 bp to 4.15%
  • 30-yr: -2 bps to 4.50%