Bond Market Update

Data Recon

• The ISM Services PMI checked in at 56.1% in February (Briefing.com consensus: 53.9%), up from 53.8% in January. The dividing line between expansion and contraction is 50.0%, so the February reading, which is the highest since July 2022, reflects services sector activity growing at a faster pace than the prior month.
  • The key takeaway from the report is the recognition that activity in the nation's largest sector accelerated in February. While this is survey-based data, it will nonetheless create a sense of optimism about Q1 growth prospects.
• Yield Check:
  • 2-yr: +3 bps to 3.53%
  • 3-yr: +3 bps to 3.54%
  • 5-yr: +4 bps to 3.67%
  • 10-yr: +3 bps to 4.08%
  • 30-yr: +2 bps to 4.72%