Bond Market Update

Data Recon

• The ISM Services PMI checked in at 53.8% in January (Briefing.com consensus: 53.7%), unchanged from a downwardly revised 53.8% (from 54.4%) in December. The dividing line between expansion and contraction is 50.0%, so the January reading reflects services sector activity growing at the same pace as the prior month.
  • The key takeaway from the report is that activity in the services sector grew at a steady pace in January at the same time prices paid for materials and services increased.
• Yield Check:
  • 2-yr: UNCH at 3.57%
  • 3-yr: -1 bp to 3.64%
  • 5-yr: UNCH at 3.84%
  • 10-yr: UNCH at 4.28%
  • 30-yr: +1 bp to 4.91%