Bond Market Update

Data Recon

• New home sales decreased 10.5% month-over-month in July to a seasonally adjusted annual rate of 607,000 (Briefing.com consensus 620,000) from a revised 678,000 (from 628,000) in June. On a year-over-year basis, new home sales were down 6.3%.
  • The key takeaway from the report is that changes in monthly sales varied greatly by region, but the overall pace of sales slowed. This increased the month's supply of new homes for sale, which could result in some pressure on prices.
• The Conference Board's Consumer Confidence Index decreased to 89.4 in August (Briefing.com consensus 90.6) from a revised 90.2 (from 90.8) in July. In the same period a year ago, the index stood at 97.8.
  • The key takeaway from the report is that the overall decrease in sentiment was owed to another worsening in the Expectations Index, which was somewhat offset by a rebound in the Present Situation Index after three months of deterioration.
• Yield Check:
  • 2-yr: -4 bps to 4.20%
  • 3-yr: -4 bps to 4.26%
  • 5-yr: -5 bps to 4.36%
  • 10-yr: -5 bps to 4.65%
  • 30-yr: -5 bps to 5.19%