Bond Market Update

Data Recon

• The ISM Services PMI increased to 54.4% in December (Briefing.com consensus 52.2%) from 52.6% in November. The dividing line between expansion and contraction is 50.0%, so the December reading, which was the highest reading for 2025, reflects services sector activity accelerating from the prior month.
  • The key takeaway from the report is that activity in the services sector accelerated in December to its best level for 2025, accented by the first expansion reading for the employment index since May 2025.
• 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%