Bond Market Update

Data Recon

• The trade deficit widened in August to $105.6 billion (Briefing.com consensus: -$93.7 billion) from a downwardly revised $92.8 billion (from -$88.6 billion) in July. Exports were $4.5 billion more than July exports, but imports were $17.2 billion more than July imports.
  • The key takeaway is that demand for crude oil and semiconductors helped drive the increase in exports and imports and can be looked at in part as a good sign for global economic activity.
• Yield Check:
  • 2-yr: -4 bps to 4.79%
  • 3-yr: -4 bps to 4.92%
  • 5-yr: -5 bps to 5.02%
  • 10-yr: -4 bps to 5.27%
  • 30-yr: -2 bps to 5.64%