Bond Market Update

Data Recon

• The trade deficit narrowed to $60.2 billion in June (Briefing.com consensus: -$62.0 billion) from a downwardly revised $71.7 billion (from -$71.5 billion) in May. That improvement stemmed from imports being $12.8 billion less than May imports, while exports were $1.3 billion less than May exports.
  • The key takeaway from the report is that it reflects the fact that tariff actions by the U.S. and the uncertainty related to the tariffs have impeded global trade activity.
• Yield check:
  • 2-yr: +4 bps to 3.72%
  • 3-yr: +3 bps to 3.68%
  • 5-yr: +3 bps to 3.77%
  • 10-yr: +2 bps to 4.22%
  • 30-yr: +1 bp tom 4.81%