Bond Market Update

Data Recon

• New home sales surged 10.9% month-over-month in April to a seasonally adjusted annual rate of 743,000 units (Briefing.com consensus 679,000) from a downwardly revised 670,000 (from 724,000) in March. On a year-over-year basis, new home sales were up 3.3%.
  • The key takeaway from the report is that new home sales in April were bolstered by a decline in the median sales price; however, the excitement surrounding the headline beat was muted by the sharp downward revision to new home sales for March. Taking that revision into account, there wasn't a great deal of change in the March-April period compared to what economists knew and expected going into the April report.
• Yield check:
  • 2-yr: -3 bps to 3.97%
  • 3-yr: -4 bps to 3.94%
  • 5-yr: -4 bps to 4.07%
  • 10-yr: -3 bps to 4.52%
  • 30-yr: -2 bps to 5.04%