Bond Market Update

Data Recon

• New home sales surged 10.6% month-over-month in July to a seasonally adjusted annual rate of 739,000 units (Briefing.com consensus 628,000) from an upwardly revised 668,000 (from 617,000) in June. On a year-over-year basis, new home sales were up 5.6%.
  • The key takeaway from the report is that new home sales, which are tabulated when contracts are signed, saw an encouraging jump in July that coincided with mortgage rates coming down.
• Yield Check:
  • 2-yr: -7 bps to 3.94%
  • 3-yr: -7 bps to 3.75%
  • 5-yr: -7 bps to 3.66%
  • 10-yr: -6 bps to 3.80%
  • 30-yr: -5 bps to 4.09%