Bond Market Update

Data Recon

• Factory orders declined 0.7% month-over-month in December (Briefing.com consensus: 0.9%) following a 2.7% increase in November. Excluding transportation, factory orders increased 0.4% after increasing 0.1% in November. Shipments of manufactured goods rose 0.5% after sliding 0.2% in November.
  • The key takeaway from the report is that the weakness was concentrated in the transportation industry; otherwise, it was a decent month of order activity for durable goods.
• Yield Check:
  • 2-yr: -1 bp to 3.47%
  • 3-yr: -2 bps to 3.48%
  • 5-yr: -4 bps to 3.62%
  • 10-yr: -3 bps to 4.06%
  • 30-yr: -2 bps to 4.71%