Bond Market Update

Data Recon

• Existing home sales dipped 0.2% month-over-month in August to a seasonally adjusted annual rate of 4.00 million (Briefing.com consensus 3.99 million) from an unrevised 4.01 million in July. Sales were up 1.8% on a year-over-year basis.
  • The key takeaway from the report is that home sales in August were still constrained by high prices, higher mortgage rates, and limited supply. The biggest month-over-month increase in sales was in the Midwest, which is also the region with the lowest median price (by a lot).
• Yield Check:
  • 2-yr: +5 bps to 3.65%
  • 3-yr: +5 bps to 3.65%
  • 5-yr: +6 bps to 3.77%
  • 10-yr: +4 bps to 4.19%
  • 30-yr: +1 bp to 4.77%