Bond Market Update

Data Recon

• Factory orders jumped 2.7% month-over-month in November (Briefing.com consensus: 0.5%) following an upwardly revised 1.2% decline (from -1.3%) in October. Excluding transportation, factory orders increased 0.2% after declining 0.1% in October. Shipments of manufactured goods slipped 0.1% after increasing 0.1% in October.
  • The key takeaway from the report is that transportation equipment orders, which are volatile, drove the increase in total factory orders.
• Yield Check:
  • 2-yr: -2 bps to 3.56%
  • 3-yr: -2 bps to 3.63%
  • 5-yr: -2 bps to 3.82%
  • 10-yr: -1 bp to 4.24%
  • 30-yr: +2 bps to 4.88%