Bond Market Update

Data Recon

• The ISM Manufacturing Index checked in at 52.7% for April (Briefing.com consensus: 53.1%), unchanged from March. The dividing line between expansion and contraction is 50.0%, so the April figure suggests the rate of change in manufacturing activity in April was the same as in March.
  • The key takeaway from the report is that it had some stagflation aspects for the manufacturing sector, namely low growth, a further contraction in employment, and a stark increase in the prices index, which has risen 25.6 percentage points in the last three months.
• Yield Check:
  • 2-yr: -2 bps to 3.86%
  • 3-yr: -4 bps to 3.87%
  • 5-yr: -4 bps to 3.99%
  • 10-yr: -4 bps to 4.36%
  • 30-yr: -4 bps to 4.95%