Bond Market Update

Data Recon

• The Department of Commerce released construction spending data for November and December as it continues to play catch-up from the government shutdown. For November, construction spending declined 0.2% month-over-month following a 0.1% decline in October. For December, construction spending jumped 0.3% month-over-month.
  • The key takeaway from the report is that residential construction spending accounted for the entirety of the monthly increase in total construction spending.
• Yield Check:
  • 2-yr: -4 bps to 3.41%
  • 3-yr: -5 bps to 3.41%
  • 5-yr: -4 bps to 3.54%
  • 10-yr: -4 bps to 3.98%
  • 30-yr: -3 bps to 4.64%