Bond Market Update

Data Recon

• The preliminary final University of Michigan Consumer Sentiment reading for February increased to 57.3 (Briefing.com consensus: 54.3) from the final reading of 56.4 for January. In the same period a year ago, the index stood at 64.7.
  • The key takeaway from the report is that there was a surge in sentiment among consumers with the largest stock portfolios, whereas it remained at "dismal levels" for consumers without stock holdings. [Note: interviews for this release ended this past Monday, so with steep losses in many tech stocks since then, there is a good chance of a downward revision when the final report is released on February 20, barring a sustained rebound effort.]
• Yield Check:
  • 2-yr: +1 bp to 3.50%
  • 3-yr: +1 bp to 3.57%
  • 5-yr: +1 bp to 3.76%
  • 10-yr: +1 bp to 4.22%
  • 30-yr: UNCH at 4.87%