Bond Market Update

Data Recon

• Factory orders increased 0.1% month-over-month in January following an upwardly revised 0.4% decline (from -0.7%) in December. Excluding transportation, factory orders increased 0.4% after increasing 0.6% in December. Shipments of manufactured goods rose 0.5% after increasing 0.7% in December.
  • The key takeaway from the report is the tepid level of business spending in January, evidenced by the 0.1% increase in new orders for nondefense capital goods excluding aircraft.
• Yield check:
  • 2-yr: +4 bps to 3.71%
  • 3-yr: +4 bps to 3.72%
  • 5-yr: +3 bps to 3.82%
  • 10-yr: +3 bps to 4.23%
  • 30-yr: +1 bp to 4.86%