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Bond Market Commentary

Updates on bond market data, news, and activity each day.

September 27, 2023

Over in bond land, Treasury yields are lower ahead of the opening bell Wednesday as investors await the release of August’s durable goods orders. The yield on the benchmark 10-year note is falling four basis points (0.04%) to 4.51%, while the 30-year bond yield is decreasing five basis points (0.05%) to 4.64%. The yield on the two-year note is decreasing seven basis points (0.07%) to 5.06%.

Treasury yields were higher on Tuesday, with the 10-year yield reaching a new 15-year high as investors evaluated August’s new home sales and September’s consumer confidence data; both came in below consensus estimates. The yield on the 10-year note rose one basis point (0.01%) to 4.55%, while the 30-year bond yield increased three basis points (0.03%) to 4.69%. The yield on the two-year note, which is more sensitive to changes in monetary policy, increased one basis point (0.01%) to 5.13%.

On the data front today, Mortgage Bankers Association (MBA) mortgage applications decreased 1.3% for the week ending September 22 versus the prior week’s increase of 5.4%. Preliminary readings for August’s durable goods orders and durable goods orders excluding transportation are expected to fall 0.5% and rise 0.2%, respectively, versus the prior month’s decrease and increase of 5.2% and 0.4%, respectively. The Department of Energy (DOE) crude oil inventories are anticipated to decrease by 0.9 million barrels for the week ending September 22 versus the prior week’s decrease of 2.1 million barrels.

In the central bank space, Minneapolis Federal Reserve (Fed) President Neel Kashkari is scheduled to speak on CNBC today.

In the auction space, the U.S. Treasury is set to issue $52 billion in 17-week bills, $49 billion in 5-year notes, and $24 billion in 2-year floating rate notes (FRN).

Municipal Market Commentary

The Bloomberg 30-day visible supply rose $1.578 billion to $12.439 billion on Tuesday, above the 12-month average of $8.278 billion.

This information is obtained from sources and data considered to be reliable, but its accuracy and completeness is not guaranteed by Wells Fargo Advisors. Additional information available by request.

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