Bond Market Update

Data Recon

• Existing home sales decreased 1.7% month-over-month in July to a seasonally adjusted annual rate of 4.06 million (Briefing.com consensus: 4.07 million) from an upwardly revised 4.13 million (from 4.09 million) in June. Sales were up 0.7% on a year-over-year basis.
  • The key takeaway from the report is that mortgage rates above 6.00%, limited inventory, and elevated prices continue to work against stronger existing home sales activity.
• Yield Check:
  • 2-yr: -2 bps to 4.22%
  • 3-yr: -2 bps to 4.28%
  • 5-yr: -2 bps to 4.38%
  • 10-yr: -2 bps to 4.68%
  • 30-yr: -1 bp to 5.23%