Bond Market Update

Data Recon

• Factory orders surged 4.3% month-over-month in March (Briefing.com consensus 4.1%), bolstered by aircraft orders, after increasing a downwardly revised 0.5% (from 0.6%) in February. Excluding transportation, factory orders declined 0.2% after increasing 0.3% in February. Shipments of manufactured goods slipped 0.1% after increasing 0.7% in February.
  • The key takeaway from the report is that the headline number masks a languid situation for factory orders in March, which were negative when the transportation component is removed.
• Yield Check:
  • 2-yr: +6 bps to 3.76%
  • 3-yr: +8 bps to 3.76%
  • 5-yr: +7 bps to 3.88%
  • 10-yr: +5 bps to 4.28%
  • 30-yr: +4 bps to 4.78%