Bond Market Update

Data Recon

• Factory orders decreased 1.3% month-over-month in October (Briefing.com consensus: -1.0%) following a 0.2% increase in September. Excluding transportation, factory orders decreased 0.2% after increasing 0.1% in September. Shipments of manufactured goods inched up 0.1% after declining 0.1% in September.
  • The key takeaway from the dated report is that it was better than the headline suggests thanks to a pickup in business spending that was reflected in the increase in new orders for nondefense capital goods excluding aircraft.
• Yield Check:
  • 2-yr: -1 bp to 3.47%
  • 3-yr: -1 bp to 3.53%
  • 5-yr: -1 bp to 3.71%
  • 10-yr: -2 bps to 4.16%
  • 30-yr: -3 bps to 4.84%