The market opened with treasuriesnearly unchanged from Friday’sclose despite the newly announced U.S. immigration policies over the weekend. The UST10-Year yield is currently at 2.486% after closing at 2.484% prior.
December’s Personal Income report showed a 0.30% MoM growth in income, which was slightly below expectations of a 0.40% increase, while Personal Spending for December rose 0.50% versus a 0.20% increase prior. The PCE DeflatorMoM and the Core PCE DeflatorMoM both came in as expected, rising 0.20% and 0.10% respectively in December.
The remainder of this week’s economic calendar consists of heavy data, which includes Tuesday’sEmployment Cost Index and Chicago Purchasing Manager, Wednesday’sADP Employment Change and ISM Manufacturing, Thursday’sInitial and Continuing Claims, and the release of January’s jobs report on Friday. Additionally, the first FOMC meeting of the year begins tomorrow. The market does not expect a rate change at the end of this two-day meeting, but the tone of the FOMC Statement could move the probabilities of a March rate hike higher.
This information is provided solely for informational use and is not intended as trading or investment advice in any manner whatsoever. Sun West Mortgage Company, Inc. is not a licensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice
December’s Personal Income report showed a 0.30% MoM growth in income, which was slightly below expectations of a 0.40% increase, while Personal Spending for December rose 0.50% versus a 0.20% increase prior. The PCE Deflator MoM and the Core PCE Deflator MoM both came in as expected, rising 0.20% and 0.10% respectively in December.
The remainder of this week’s economic calendar consists of heavy data, which includes Tuesday’s Employment Cost Index and Chicago Purchasing Manager, Wednesday’s ADP Employment Change and ISM Manufacturing, Thursday’s Initial and Continuing Claims, and the release of January’s jobs report on Friday. Additionally, the first FOMC meeting of the year begins tomorrow. The market does not expect a rate change at the end of this two-day meeting, but the tone of the FOMC Statement could move the probabilities of a March rate hike higher.
The curve has bull-steepened with the UST 10-Year up 0.2 bp from prior closing.