Bond Market Update

Data Recon

• Existing home sales decreased 2.7% month-over-month in June to a seasonally adjusted annual rate of 3.93 million (Briefing.com consensus 4.00 million) from a revised 4.04 million (from 4.03 million) in May. Sales were unchanged on a year-over-year basis.
  • The key takeaway from the report is that the median home sales price continued growing in June even though sales decelerated, which puts the spotlight on housing affordability at a time when mortgage rates remain high.
• Yield Check:
  • 2-yr: +2 bps to 3.85%
  • 3-yr: +2 bps to 3.80%
  • 5-yr: +4 bps to 3.91%
  • 10-yr: +4 bps to 4.38%
  • 30-yr: +4 bps to 4.95%