Bond Market Update

Data Recon

• Existing home sales increased 3.2% month-over-month in May to a seasonally adjusted annual rate of 4.17 million from an upwardly revised 4.04 million (from 4.02 million) in April. Sales were also up 3.2% on a year-over-year basis.
  • The key takeaway from the report is that existing home sales hit their highest level since December, bolstered by lower mortgage rates (versus the year-ago period) and income gains outpacing home price growth, which led to improving affordability conditions across all regions.
• Yield Check:
  • 2-yr: -2 bps to 4.14%
  • 3-yr: -2 bps to 4.19%
  • 5-yr: -1 bp to 4.27%
  • 10-yr: -1 bp to 4.54%
  • 30-yr: UNCH at 5.02%