Bond Market Update

Data Recon

• The final July reading for the University of Michigan Index of Consumer Sentiment rose to 51.5 (Briefing.com consensus 51.1) from the preliminary reading of 51.1. The final reading for June was a record-low 50.0. One year ago, the July reading was at 81.2.
• The key takeaway from the report is that consumer sentiment remains near record-low levels amid persistent worries about inflation and growing worries about a softening labor market.
  • The Current Economic Conditions Index increased to 58.1 from the preliminary reading of to 57.1. The final reading for June was 53.8.
  • The Index of Consumer Expectations held steady at 47.3. The final reading for June was 47.5.
  • The year-ahead expected inflation rate held at 5.2% versus 5.3% in June.
  • 5-year inflation expectations increased to 2.9% from the preliminary reading of 2.8%. The final June reading was 3.1%.
• Yield Check:
  • 2-yr: +2 bps to 2.90%
  • 3-yr: +1 bp to 2.83%
  • 5-yr: +2 bps to 2.73%
  • 10-yr: +1 bp to 2.69%
  • 30-yr: -1 bp to 3.03%