Bond Market Update

Data Recon

• Existing home sales increased 1.5% month-over-month in September to a seasonally adjusted annual rate of 4.06 million (Briefing.com consensus 4.05 million) from an unrevised 4.00 million in August. Sales were up 4.1% on a year-over-year basis.
  • The key takeaway from the report is that home sales in September were aided by falling mortgage rates, which eased (but did not negate) affordability constraints for some home buyers.
• Yield Check:
  • 2-yr: +3 bps to 3.47%
  • 3-yr: +3 bps to 3.47%
  • 5-yr: +3 bps to 3.58%
  • 10-yr: +3 bps to 3.98%
  • 30-yr: +2 bps to 4.56%