Bond Market Update

Data Recon

• Total CPI was up 0.4% month-over-month in August, as expected, while core CPI, which excludes food and energy, was up 0.3% (Briefing.com consensus: 0.2%). With these changes, the year-over-year increase in total CPI was 3.4%, as expected, unchanged from July, and core CPI was up 2.4%, down from 2.5% in July.
  • The key takeaway from the report is that it wasn't good enough to put September rate-hike fears to rest.
• Yield Check:
  • 2-yr: +3 bps to 4.58%
  • 3-yr: +2 bps to 4.67%
  • 5-yr: UNCH at 4.73%
  • 10-yr: -1 bp to 4.93%
  • 30-yr: -3 bps to 5.34%