Bond Market Update

Data Recon

• Existing home sales decreased 8.8% month-over-month in January to a seasonally adjusted annual rate of 3.91 million (Briefing.com consensus 4.21 million) from a downwardly revised 4.27 million (from 4.35 million) in December. Sales were down 4.4% on a year-over-year basis.
  • The key takeaway from the report is that the existing home market remains supply constrained. That is pushing up prices and mitigating some of the affordability benefits linked to wage growth and lower mortgage rates.
• Yield Check:
  • 2-yr: -2 bps to 3.49%
  • 3-yr: -3 bps to 3.54%
  • 5-yr: -3 bps to 3.71%
  • 10-yr: -3 bps to 4.15%
  • 30-yr: -4 bps to 4.78%