Bond Market Update

Data Recon

• The ISM Services PMI increased to 52.0% in August (Briefing.com consensus 50.5%) from 50.1% in July. The dividing line between expansion and contraction is 50.0%, so the August reading reflects services sector activity expanding at a faster pace versus the prior month.
  • The key takeaway from the report is that it is a mixed bag for policymakers, featuring faster growth overall but an ongoing contraction in employment and a continuation of price pressures for services organizations.
• Yield Check:
  • 2-yr: -1 bp to 3.60%
  • 3-yr: -2 bps to 3.56%
  • 5-yr: -3 bps to 3.66%
  • 10-yr: -2 bps to 4.19%
  • 30-yr: UNCH at 4.89%