Bond Market Update

Data Recon

• Factory orders increased 0.1% month-over-month in August (Briefing.com consensus: 0.0%) following a downwardly revised 0.8% increase (from 0.9%) in July. Excluding transportation, factory orders increased 0.3% on the heels of a 0.7% increase in July. Shipments of manufactured goods were flat after being up 0.8% in July.
  • The key takeaway from the report is that business spending was up solidly in August, notwithstanding an overall sluggish increase in factory orders.
• Yield Check:
  • 2-yr: -1 bp to 4.78%
  • 3-yr: UNCH at 4.79%
  • 5-yr: -2 bps to 4.99%
  • 10-yr: -3 bps to 5.21%
  • 30-yr: -3 bps to 5.57%