Bond Market Update

Data Recon

• Durable orders were down 2.8% month-over-month in July (Briefing.com consensus -3.5%) after a revised 9.4% drop (from -9.3%) in June. Excluding transportation, durable goods orders were up 1.1% month-over-month (Briefing.com consensus 0.1%) after increasing a revised 0.3% (from 0.2%) in June.
  • The key takeaway from the report is that nondefense capital goods orders excluding aircraft—a proxy for business investment—increased 1.1% in July after falling 0.6% in June, making this a generally positive report.
• Yield Check:
  • 2-yr: -4 bps to 3.69%
  • 3-yr: -3 bps to 3.65%
  • 5-yr: -2 bps to 3.77%
  • 10-yr: +1 bp to 4.28%
  • 30-yr: +3 bps to 4.92%