Bond Market Update

Data Recon

• New home sales decreased 0.6% month-over-month in July to a seasonally adjusted annual rate of 652,000 units (Briefing.com consensus 630,000) from an upwardly revised 656,000 (from 627,000) in June. On a year-over-year basis, new home sales were down 8.2%.
  • The key takeaway from the report is that the pace of sales was sluggish, owed in part to the upward revision for June. However, the affordability constraint associated with higher mortgage rates and a reduced supply of lower-priced homes was evident, as sales were lackluster month-over-month despite a drop in median and average selling prices.
• Yield Check:
  • 2-yr: +4 bps to 3.73%
  • 3-yr: +4 bps to 3.68%
  • 5-yr: +4 bps to 3.80%
  • 10-yr: +3 bps to 4.29%
  • 30-yr: +3 bps to 4.91%