Bond Market Update

Data Recon

• Initial claims decreased 1,000 to 197,000 (Brieifng.com consensus: 202,000) for the week ending September 19. Continuing claims increased 2,000 to 1.719 million for the week ending September 12.
  • The key takeaway from the report is that it shows no change in the understanding that layoff activity is quite low, which is reflective of a generally solid demand environment.
• The Q2 Current Account Deficit widened to $246.0 billion (Briefing.com consensus: -$221.0 billion) from an upwardly revised deficit of $212.6 billion (from -$228.6 billion) for Q1.
• Yield check:
  • 2-yr: -4 bps to 4.85%
  • 3-yr: -4 bps to 4.93%
  • 5-yr: -3 bps to 4.97%
  • 10-yr: -1 bp to 5.10%
  • 30-yr: +1 bp to 5.41%