Bond Market Update

Data Recon

• Existing home sales increased 5.1% month-over-month in December to a seasonally adjusted annual rate of 4.35 million (Briefing.com consensus 4.15 million) versus an upwardly revised 4.14 million (from 4.13 million) in November. Sales were up 1.4% on a year-over-year basis.
  • The key takeaway from the report is that home sales in December increased across all regions, leading to the strongest increase in seasonally adjusted sales in nearly three years despite tight inventory levels.
• Yield Check:
  • 2-yr: -1 bp to 3.52%
  • 3-yr: -2 bps to 3.57%
  • 5-yr: -1 bp to 3.73%
  • 10-yr: -2 bps to 4.15%
  • 30-yr: -2 bps to 4.81%