Bond Market Update

Data Recon

• Factory orders increased 0.9% month-over-month in July (Briefing.com consensus: 0.6%) following an upwardly revised 0.2% decline (from -0.3%) in June. Excluding transportation, factory orders increased 0.6% on the heels of a 0.1% decline in June. Shipments of manufactured goods increased 0.8% after being flat in June.
  • The key takeaway from the report is that factory orders were running at a good clip in July for durable and nondurable goods. Although business spending was flat, that was likely just a normal slowdown from the solid increases registered in May and June.
• Yield Check:
  • 2-yr: -1 bp to 4.38%
  • 3-yr: -1 bp to 4.45%
  • 5-yr: -1 bp to 4.54%
  • 10-yr: -1 bp to 4.79%
  • 30-yr: -1 bp to 5.23%