Bond Market Update

Data Recon

• Durable goods orders decreased 1.4% month-over-month in February (Briefing.com consensus: 0.5%) following a downwardly revised 0.5% decline (from 0.0%) in January. Excluding transportation, durable goods orders increased 0.8% (Briefing.com consensus: 0.5%) following a downwardly revised 0.3% increase (from 0.4%) in January.
  • The key takeaway from the report is that the weakness in February was concentrated largely in transportation and capital goods orders. Otherwise, order activity was decent, highlighted by a 0.6% increase in new orders for nondefense capital goods, excluding aircraft—a proxy for business spending.
• Yield Check:
  • 2-yr: -1 bp to 3.84%
  • 3-yr: UNCH at 3.87%
  • 5-yr: UNCH at 3.98%
  • 10-yr: UNCH at 4.33%
  • 30-yr: +1 bp to 4.90%