Today’s session opened with Treasuries lower than yesterday. The yield on the UST10-Year is currently at 2.565% after closing at 2.538% during the prior session.
Treasuries fell at the open of today’s session as coreinflation readings reflected higher than expected levels and Wall Street’s earnings season kicked off with healthy numbers sending stocks roaring and feeding a risk-on environment. Probabilities of a Fed rate hike in March rose to 85% from 79% on the news.
Month-over-monthCPI for December rose 0.10%, matching survey but falling below its prior 0.40% mark; while year-over-yearCPI for December rose 2.10%, also matching survey and falling slightly below its prior 2.20%. However, month-over-monthCPI Ex Food and Energy for December rose 0.30%, exceeding survey of 0.20% and its 0.10% prior; while year-over-yearCPI Ex Food and Energy for December rose 1.80%, exceeding survey and prior of 1.70%. Further, month-over-monthRetail Sales for December rose 0.40%, falling short of 0.50% survey and 0.90% prior revised; while Business Inventories for November rose 0.40%, matching survey and beating prior 0.00% revised.
Also today, Fed presidents Harker and Rosengren are scheduled to speak on U.S. economic outlook and the economy in Philadelphia and San Diego respectively.
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Treasuries fell at the open of today’s session as core inflation readings reflected higher than expected levels and Wall Street’s earnings season kicked off with healthy numbers sending stocks roaring and feeding a risk-on environment. Probabilities of a Fed rate hike in March rose to 85% from 79% on the news.
Month-over-month CPI for December rose 0.10%, matching survey but falling below its prior 0.40% mark; while year-over-year CPI for December rose 2.10%, also matching survey and falling slightly below its prior 2.20%. However, month-over-month CPI Ex Food and Energy for December rose 0.30%, exceeding survey of 0.20% and its 0.10% prior; while year-over-year CPI Ex Food and Energy for December rose 1.80%, exceeding survey and prior of 1.70%. Further, month-over-month Retail Sales for December rose 0.40%, falling short of 0.50% survey and 0.90% prior revised; while Business Inventories for November rose 0.40%, matching survey and beating prior 0.00% revised.
Also today, Fed presidents Harker and Rosengren are scheduled to speak on U.S. economic outlook and the economy in Philadelphia and San Diego respectively.
The curve has bear-flattened with the UST 10-Year yield up 2.7 bps from prior closing.
Have A Nice Weekend!