Bond Market Update

Data Recon

• The Treasury Department reported a $292.6 billion deficit for May (Briefing.com consensus: $202.5 bln), which was $23 billion less than the deficit reported for May 2025. Receipts totaled $335.5 billion, while outlays reached $628.2 billion.
  • The key takeaway from the report, for some, will be the decline in customs duties, but even more important is the continued increase in the outlay for net interest ($107 billion), which was 47% more in May than the outlay for national defense.
• Yield Check:
  • 2-yr: UNCH at 4.12%
  • 3-yr: UNCH at 4.18%
  • 5-yr: +1 bp to 4.26%
  • 10-yr: +1 bp to 4.54%
  • 30-yr: +1 bp to 5.02%