Bond Market Update

Data Recon

• Construction spending decreased 0.3% month-over-month in January (Briefing.com consensus: 0.1%) following an upwardly revised 0.8% increase (from 0.3%) in December. On a year-over-year basis, construction spending was up 1.0%.
  • The key takeaway from the report is that the weakness was paced by a decline in private residential spending, which is believed to be a knock-on effect of labor constraints and higher interest rates.
• Yield Check:
  • 2-yr: -5 bps to 3.84%
  • 3-yr: -5 bps to 3.86%
  • 5-yr: -4 bps to 3.97%
  • 10-yr: -4 bps to 4.35%
  • 30-yr: -4 bps to 4.92%