The UST10-Year yield is at 2.461% this morning after closing at 2.391% yesterday.
This morning, U.S. Treasuries have continued selling off across the curve primarily driven by yesterday’s Fedspeak and following President Trump’s first speech to Congress. Bond prices began to drop yesterday after both Federal Reserve Presidents, William Dudley and John Williams, signaled to a heightened probability of a rate hike at the upcoming FOMC meeting. Today, the markets will try to digest Trump’s pro-growth speech and gain some clarity on his fiscal policy in spite of the few details provided.
There is a slew of economic releases this morning, MBA Mortgage Applications rose to 5.80% for the week ended February 24th after falling 2.00% the week prior. FHA purchases are up 10.40% and VA refinance’s fell 0.60%. The average 30-Year fixed rate dropped 0.06% to 4.300%. Personal Income grew 0.40% to $63 Billion in January. Personal Spending grew slightly by 0.20% vs. 0.50% the previous month. MoMCore PCE grew 0.30%, but overall PCE remained at 1.70% growth annually.
In February, Markit U.S. Manufacturing PMI remained strong registering at 54.20, on pace for its strongest quarterly improvement in 2 years. ISM Manufacturing rose 1.70 to 57.70, the largest jump since August 2014, due to increased production and a growing demand in new orders. Finally, Construction Spending dropped 1.00% in January as public construction dropped, primarily in highways and education.
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This morning, U.S. Treasuries have continued selling off across the curve primarily driven by yesterday’s Fedspeak and following President Trump’s first speech to Congress. Bond prices began to drop yesterday after both Federal Reserve Presidents, William Dudley and John Williams, signaled to a heightened probability of a rate hike at the upcoming FOMC meeting. Today, the markets will try to digest Trump’s pro-growth speech and gain some clarity on his fiscal policy in spite of the few details provided.
There is a slew of economic releases this morning, MBA Mortgage Applications rose to 5.80% for the week ended February 24th after falling 2.00% the week prior. FHA purchases are up 10.40% and VA refinance’s fell 0.60%. The average 30-Year fixed rate dropped 0.06% to 4.300%. Personal Income grew 0.40% to $63 Billion in January. Personal Spending grew slightly by 0.20% vs. 0.50% the previous month. MoM Core PCE grew 0.30%, but overall PCE remained at 1.70% growth annually.
In February, Markit U.S. Manufacturing PMI remained strong registering at 54.20, on pace for its strongest quarterly improvement in 2 years. ISM Manufacturing rose 1.70 to 57.70, the largest jump since August 2014, due to increased production and a growing demand in new orders. Finally, Construction Spending dropped 1.00% in January as public construction dropped, primarily in highways and education.
The curve has bear-steepened with the UST 10-Year 7 bps up from prior closing.