Bond Market Update

Data Recon

• The ISM Services PMI decreased to 50.8% in March (Briefing.com consensus 53.2%) from 53.5% in February. The dividing line between expansion and contraction is 50.0%, so the March reading reflects services sector activity expanding but at a slower pace than what was seen in the prior month. March marked the 55th time in 58 months that the Services PMI indicated expansion.
  • The key takeaway from the report is that growth in the services sector slowed notably in March with employment contracting for the first time since September.
• Yield Check:
  • 2-yr: -19 bps to 3.71%
  • 3-yr: -12 bps to 3.67%
  • 5-yr: -22 bps to 3.73%
  • 10-yr: -18 bps to 4.02%
  • 30-yr: -10 bps to 4.46%