Bond Market Update

Data Recon

• The trade deficit widened to a record $140.5 billion in March (Briefing.com consensus -$127.5 billion) from a downwardly revised $123.2 billion (from -$122.7 billion) in February. The widening was the result of March exports being $0.5 billion more than February exports and March imports being $17.8 billion more than February imports.
  • The key takeaway from the report is the surge in imports, which detracted sharply from Q1 GDP, and was highlighted by a $22.5 billion increase in imports of consumer goods that was led by a $20.9 billion increase in pharmaceutical preparations.
• Yield Check:
  • 2-yr: -5 bps to 3.79%
  • 3-yr: -6 bps to 3.76%
  • 5-yr: -3 bps to 3.91%
  • 10-yr: -1 bp to 4.33%
  • 30-yr: UNCH at 4.83%