Bond Market Update

Data Recon

• Initial jobless claims for the week ending September 12 decreased by 10,000 to 196,000 (Briefing.com consensus: 209,000). Continuing jobless claims for the week ending September 5 decreased by 39,000 to 1.730 million.
  • The key takeaway from the report is the remarkably low level of initial jobless claims, which suggests a low-firing environment.
• Housing starts declined 2.6% month-over-month in August to a seasonally adjusted annual rate of 1.275 million (Briefing.com consensus: 1.325 million), although single-unit starts were up 7.6%. Building permits declined 2.7% month-over-month to a seasonally adjusted annual rate of 1.394 million (Briefing.com consensus: 1.410 million).
  • The key takeaway from the report is that building permits—a leading indicator—were flat to down across all regions for single-unit dwellings.
• The Philadelphia Fed Index fell to 37.8 for September (Briefing.com consensus: 35.0) from 47.4 in August.
  • The key takeaway from the report is that the prices paid index jumped eight points to 48.6, while the prices received index hit its highest point (31.3) since April.
• Yield Check:
  • 2-yr: -6 bps to 4.67%
  • 3-yr: -6 bps to 4.75%
  • 5-yr: -6 bps to 4.80%
  • 10-yr: -6 bps to 4.95%
  • 30-yr: -4 bps to 5.31%