Treasuriesare higher than yesterday at the opening of today’s session. The yield on the UST10-Year is currently at 2.715% after closing at 2.721% during the prior session.
Prices on the 10-Year note stabilized and inched slightly higher following an announcement by the Treasury Department; which indicated it plans to elevate the size of longer-term debt issuance in response to expectations of growing deficits and a shrinking Federal Reserve balance sheet.
The economic calendar today features MBA Mortgage Applications for the week ended on January 26 dropping by 2.60% versus its prior mark of 4.50%; while ADP Employments Change for January reached 234k, exceeding survey of 185k but below its prior of 242k revised. Also in today, quarter-over-quarterEmployment Cost Index for the 4Q reflected a 0.60% change, matching estimates and dropping slightly from its previous mark of 0.70%. Further, the Chicago Purchasing Managers Index for January came in at 65.70, above survey of 64.00 but below prior 67.80 revised. Finally, month-over-monthPending Home Sales for December rose 0.50%, matching survey and rising above its prior 0.30% revised; while year-over-yearPending Home Sales for December dropped 1.80%, below survey of 1.70% and prior mark of 0.60%.
Risk assets received a boost today following the President’s state of the union address to Congress last night, after underscoring plans for large investments in the nation’s infrastructure among others; while the Fed’s FOMC is scheduled to announce their decision on possible changes to short-term interest rates at 11:00 AM (PT) today.
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Prices on the 10-Year note stabilized and inched slightly higher following an announcement by the Treasury Department; which indicated it plans to elevate the size of longer-term debt issuance in response to expectations of growing deficits and a shrinking Federal Reserve balance sheet.
The economic calendar today features MBA Mortgage Applications for the week ended on January 26 dropping by 2.60% versus its prior mark of 4.50%; while ADP Employments Change for January reached 234k, exceeding survey of 185k but below its prior of 242k revised. Also in today, quarter-over-quarter Employment Cost Index for the 4Q reflected a 0.60% change, matching estimates and dropping slightly from its previous mark of 0.70%. Further, the Chicago Purchasing Managers Index for January came in at 65.70, above survey of 64.00 but below prior 67.80 revised. Finally, month-over-month Pending Home Sales for December rose 0.50%, matching survey and rising above its prior 0.30% revised; while year-over-year Pending Home Sales for December dropped 1.80%, below survey of 1.70% and prior mark of 0.60%.
Risk assets received a boost today following the President’s state of the union address to Congress last night, after underscoring plans for large investments in the nation’s infrastructure among others; while the Fed’s FOMC is scheduled to announce their decision on possible changes to short-term interest rates at 11:00 AM (PT) today.
The curve has bull-flattened with the UST 10-Year yield down 0.6 bp from prior closing.