Bond Market Update

Data Recon

• Total housing starts increased 1.6% month-over-month in April to a seasonally adjusted annual rate of 1.361 million units (Briefing.com consensus 1.383 million), yet single-unit starts dropped 2.1%. Total building permits were down 4.7% month-over-month in April to a seasonally adjusted annual rate of 1.412 million (Briefing.com consensus 1.450 million), yet single-unit permits were down 5.1% and driven by declines in all regions.
  • The key takeaway from the report is the weakness in single-unit permits across all regions, as it speaks to cautious-minded consumers and builders dealing with higher prices, higher mortgage rates, and higher building costs.
• Yield Check:
  • 2-yr: -4 bps to 3.93%
  • 3-yr: -5 bps to 3.91%
  • 5-yr: -5 bps to 4.02%
  • 10-yr: -6 bps to 4.40%
  • 30-yr: -5 bps to 4.87%