Bond Market Update

Data Recon

• Factory orders decreased 0.3% month-over-month in June (Briefing.com consensus: 0.2%) following an upwardly revised 1.1% decline (from -1.3%) in May. Excluding transportation, factory orders decreased 0.4% on the heels of a 2.0% increase in May. Shipments of manufactured goods fell 0.2% after increasing 1.6% in May.
  • The key takeaway from the report is rooted in the strong business investment activity, which shows up in the 1.2% increase in new orders for capital goods, excluding aircraft, that followed a 1.9% increase in May.
• Yield Check:
  • 2-yr: -6 bps to 4.19%
  • 3-yr: -6 bps to 4.25%
  • 5-yr: -6 bps to 4.34%
  • 10-yr: -5 bps to 4.64%
  • 30-yr: -3 bps to 5.20%