Bond Market Update

Data Recon

• Construction spending increased 0.6% month-over-month in March (Briefing.com consensus: 0.4%) following a 0.2% decline in February. On a year-over-year basis, construction spending was up 1.6%.
  • The key takeaway from the report is that the strength in March was concentrated in the residential sector and particularly in new single-family construction.
• Yield Check:
  • 2-yr: -2 bps to 3.85%
  • 3-yr: -2 bps to 3.87%
  • 5-yr: -3 bps to 3.97%
  • 10-yr: -3 bps to 4.33%
  • 30-yr: -1 bp to 4.93%