Bond Market Update

Data Recon

• Factory orders increased 1.5% month-over-month in March (Briefing.com consensus: 0.5%) following an upwardly revised 0.3% increase (from 0.0%) in February. Excluding transportation, factory orders increased 1.6% for the second straight month. Shipments of manufactured goods were up 1.4% after increasing 1.7% in February.
  • The key takeaway from the report is that factory order activity ramped up in March, driven by widespread strength that was punctuated by a big increase (3.4%) in new orders for nondefense capital goods excluding aircraft.
• Yield Check:
  • 2-yr: +4 bps to 3.93%
  • 3-yr: +4 bps to 3.95%
  • 5-yr: +4 bps to 4.06%
  • 10-yr: +4 bps to 4.42%
  • 30-yr: +4 bps to 5.01%