Bond Market Update

Data Recon

• The final reading for the University of Michigan Consumer Sentiment Index for May dropped to 44.8 (Briefing.com consensus: 48.2) from the preliminary reading of 48.2, marking a new historic low. The final reading for April was 49.8. In the same period a year ago, the index stood at 52.2.
  • The key takeaway from the report is that consumers are clearly concerned about rising costs and their ability to out-earn inflation, which they are concerned will increase beyond fuel prices.
• Yield Check:
  • 2-yr: +2 bps to 4.11%
  • 3-yr: +1 bp to 4.16%
  • 5-yr: UNCH at 4.26%
  • 10-yr: -2 bps to 4.57%
  • 30-yr: -2 bps to 5.09%