The UST10-Year yield is at 2.579% this morning after closing at 2.561% yesterday.
Yesterday, the bondmarket had a sharp sell-off following better than expected ADP employment data. This morning, the market has continued to sell-off ahead of tomorrow’snon-farm payroll numbers for a last confirmation of a rate hike next week. In European markets, the European Central Bank (ECB) decided to keep rates unchanged and continue with its asset purchasing program.
In economic releases, the Import Price Index rose 0.20% in February vs. a 0.60% increase the previous month. In spite of weaker petroleum prices, import prices have steadily increased since February 2016, and have risen for 10 of the past 12 months. The Department of Labor reported Initial Jobless Claims for the week ending March 4th which spiked to 243K from a 44 year low of 223K the week prior. Claims for those continuing to receive benefits dropped 6K to 2058K for the week ending February 25th. Lastly, Consumer Comfort rose 0.80 to 50.60, the highest level seen in 10 years as more Americans held a positive outlook for the economy and purchasing climate, however, the personal finance index remained nearly unchanged for the week ending March 5th.
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Yesterday, the bond market had a sharp sell-off following better than expected ADP employment data. This morning, the market has continued to sell-off ahead of tomorrow’s non-farm payroll numbers for a last confirmation of a rate hike next week. In European markets, the European Central Bank (ECB) decided to keep rates unchanged and continue with its asset purchasing program.
In economic releases, the Import Price Index rose 0.20% in February vs. a 0.60% increase the previous month. In spite of weaker petroleum prices, import prices have steadily increased since February 2016, and have risen for 10 of the past 12 months. The Department of Labor reported Initial Jobless Claims for the week ending March 4th which spiked to 243K from a 44 year low of 223K the week prior. Claims for those continuing to receive benefits dropped 6K to 2058K for the week ending February 25th. Lastly, Consumer Comfort rose 0.80 to 50.60, the highest level seen in 10 years as more Americans held a positive outlook for the economy and purchasing climate, however, the personal finance index remained nearly unchanged for the week ending March 5th.
The curve has bear-steepened with the UST 10-Year 1.8 bps up from prior closing.