Bond Market Update

Data Recon

• New home sales increased 1.6% month-over-month in June to a seasonally adjusted annual rate of 628,000 (Briefing.com consensus: 620,000) from an upwardly revised 618,000 (from 580,000) in May. On a year-over-year basis, new home sales were down 5.6%.
  • The key takeaway from the report is that monthly sales increases were seen in all regions, except the high-priced West region, where added affordability constraints are posed by higher mortgage rates.
• Yield Check:
  • 2-yr: -3 bps to 4.33%
  • 3-yr: -3 bps to 4.36%
  • 5-yr: -4 bps to 4.42%
  • 10-yr: -4 bps to 4.67%
  • 30-yr: -3 bps to 5.15%