The UST10-Year yield is at 2.396% this morning after closing at 2.414% yesterday.
Yesterday investors focused on the released FOMC minutes and the possibility of a March rate hike. The response received was vague, as the Fed simply stated that an upcoming rate hike would be appropriate “fairly soon”, leaving an unchanged probability of a rate hike in March, and opening up the possibility of postponement until its next meeting in June.
In economic releases, the Chicago Fed Nat Activity Index dropped -0.05 in January from a revised 0.18 growth in December. The deceleration in growth was primarily due to lower production activity and a decline in personal consumption. Initial Jobless Claims rose 6K to 244K for the week ended Feb 18th, while the 4-week moving average decreased 4K to 241K; the lowest since July 1973. Continuing Claims dropped 17K to 2060K, holding the unemployment rate amongst those eligible for benefits at 1.50%. FHFA House Price IndexMoM slowed to 0.40% in December vs. 0.70% the previous month. Lastly, Consumer Comfort dropped slightly to 48.00 as views on economy continue to strengthen, however, buying climate and personal finances gauges dropped 0.80 and 0.70 respectively.
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Yesterday investors focused on the released FOMC minutes and the possibility of a March rate hike. The response received was vague, as the Fed simply stated that an upcoming rate hike would be appropriate “fairly soon”, leaving an unchanged probability of a rate hike in March, and opening up the possibility of postponement until its next meeting in June.
In economic releases, the Chicago Fed Nat Activity Index dropped -0.05 in January from a revised 0.18 growth in December. The deceleration in growth was primarily due to lower production activity and a decline in personal consumption. Initial Jobless Claims rose 6K to 244K for the week ended Feb 18th, while the 4-week moving average decreased 4K to 241K; the lowest since July 1973. Continuing Claims dropped 17K to 2060K, holding the unemployment rate amongst those eligible for benefits at 1.50%. FHFA House Price Index MoM slowed to 0.40% in December vs. 0.70% the previous month. Lastly, Consumer Comfort dropped slightly to 48.00 as views on economy continue to strengthen, however, buying climate and personal finances gauges dropped 0.80 and 0.70 respectively.
The curve has bull-steepened with the UST 10-Year 1.8 bps down from prior closing.