Bond Market Update

Data Recon

• The ISM Services PMI edged up to 54.1% in July (Briefing.com consensus: 54.7%) from 54.0% in June. The dividing line between expansion and contraction is 50.0%, so the July reading reflects services sector activity growing at roughly the same pace as the prior month.
  • The key takeaway from the report is the understanding that services sector activity continues to run at a solid pace despite the persistence of ongoing cost pressures.
• Yield Check:
  • 2-yr: +1 bp to 4.21%
  • 3-yr: +1 bp to 4.26%
  • 5-yr: +1 bp to 4.34%
  • 10-yr: UNCH at 4.62%
  • 30-yr: -2 bps to 5.17%