Bond Market Update

Data Recon

• Existing home sales decreased 1.0% month-over-month in September to a seasonally adjusted annual rate of 3.84 million (Briefing.com consensus 3.90 million) from an upwardly revised 3.88 million (from 3.86 million) in August. Sales were down 3.5% from the same period a year ago.
  • The key takeaway from the report is that more inventory is becoming available, yet it is still a tight market, evidenced by the ongoing increase in the median home price and a very low mortgage delinquency rate.
• Yield Check:
  • 2-yr: +2 bps to 4.06%
  • 3-yr: +4 bps to 4.02%
  • 5-yr: +4 bps to 4.05%
  • 10-yr: +4 bps to 4.25%
  • 30-yr: +3 bps to 4.52%