Bond Market Update

Data Recon

• The final University of Michigan Consumer Sentiment reading for September checked in at 55.1 (Briefing.com consensus: 55.4) versus the preliminary reading of 55.4. The final reading for August was 58.2. In the same period a year ago, the index stood at 70.1. Year-ahead inflation expectations slipped to 4.7% from the preliminary reading of 4.8% and the final reading of 4.8% for August.
  Long-run inflation expectations fell to 3.7% from the preliminary reading of 3.9% and the final reading of 3.5% for August.
  • The key takeaway from the report is that expectations for the macroeconomy, including the labor market and business conditions, and personal finances receded.
• Yield check:
  • 2-yr: unch at 3.66%
  • 3-yr: unch at 3.66%
  • 5-yr: unch at 3.77%
  • 10-yr: +1 bp to 4.18%
  • 30-yr: unch at 4.75%