Bond Market Update

Data Recon

• New home sales increased 0.6% month-over-month in June to a seasonally adjusted annual rate of 627,000 units (Briefing.com consensus 650,000) from an unrevised 623,000 in May. This leaves the pace of sales near the lowest level of the year, comparable to what was seen in October. On a year-over-year basis, new home sales were down 6.6%.
  • The key takeaway from the report is that the pace of sales remained near the lowest level of the year with sharp decreases in sales in the Northeast and the West masking gains in the Midwest and the South. There was pressure on the median selling price, as homes priced between $300,000 and $399,000 accounted for 35% of all sales (2025 high), up from 25% in May.
• Yield Check:
  • 2-yr: +4 bps to 3.92%
  • 3-yr: +4 bps to 3.87%
  • 5-yr: +4 bps to 3.97%
  • 10-yr: +2 bps to 4.41%
  • 30-yr: +1 bp to 4.96%