Bond Market Update

Data Recon

• The preliminary reading for the University of Michigan Consumer Sentiment Index for August dropped to 51.0 (Briefing.com consensus: 54.5) from the final reading of 55.2 for July. In the same period a year ago, the index stood at 58.2.
  • The key takeaway from the report is that only 8% of all consumers surveyed expect their income growth to exceed inflation in the year ahead. That expectation could ultimately translate into lower discretionary spending activity.
• Yield Check:
  • 2-yr: -1 bp to 4.13%
  • 3-yr: UNCH at 4.21%
  • 5-yr: +1 bp to 4.33%
  • 10-yr: +2 bps to 4.66%
  • 30-yr: +3 bps to 5.24%