Bond Market Update

Data Recon

• New home sales increased 3.6% month-over-month in December to a seasonally adjusted annual rate of 698,000 units (Briefing.com consensus 680,000) from an upwardly revised 674,000 (from 664,000) in November. On a year-over-year basis, new home sales were up 6.7%.
  • The key takeaway from the report is that new home sales growth was ahead of expectations in December, but selling prices jumped from the bottom of the range that was seen in 2024 toward the top, which presents a headwind to selling activity going forward.
• Yield Check:
  • 2-yr: -4 bps to 4.23%
  • 3-yr: -5 bps to 4.28%
  • 5-yr: -6 bps to 4.37%
  • 10-yr: -6 bps to 4.56%
  • 30-yr: -5 bps to 4.80%