Bond Market Update

Data Recon

• The second estimate for Q1 GDP showed an upward revision to -0.2% (Briefing.com consensus -0.3%) from -0.3%, while the GDP Price Deflator was unchanged at 3.7% (Briefing.com consensus 3.7%).
  • The key takeaway from the report is that it featured a downward revision to personal spending to 1.2% from 1.8% in the advance estimate, underscoring how the tariff uncertainty and inflation angst tempered consumer spending activity.
• Initial jobless claims for the week ending May 24 increased by 16,000 to 240,000 (Briefing.com consensus 230,000), while continuing jobless claims for the week ending May 17 increased by 26,000 to 1.919 million.
  • The key takeaway from the report was the tandem jump in initial and continuing jobless claims, which denotes some increased layoff activity and some increased difficulty in finding a new job after being laid off.
• Yield check:
  • 2-yr: -2 bps to 3.97%
  • 3-yr: -2 bps to 3.96%
  • 5-yr: -3 bps to 4.04%
  • 10-yr: -2 bps to 4.46%
  • 30-yr: -2 bps to 4.96%