The UST10-Year yield is at 2.460% this morning after closing at 2.462% yesterday.
In the overnight session, U.S. Treasuriessold-off across the curve but have begun to regain some ground since market opened this morning.
The only print today was the release of the current account balance, which indicated that the U.S. deficit narrowed from the revised -$116.00 Billion to -$112.40 Billion in the fourth quarter according to the Bureau of Economic Analysis (BEA). The $3.60 Billion decrease in deficit was largely due to a $19.90 Billion increase in primary income surplus as well as a $17.50 Billion increase in the deficit of goods. The deficit currently represents 2.40% of the GDP vs. 2.50% in the third quarter.
Yesterday, Chicago Fed President Evans reinforced that the Fed is looking to raise interest rates a total of 3 times this year but open to 4 hikes if the economy and inflation really picked up. Later today, Kansas City Fed President George (known to be one of the more hawkish members) will discuss the U.S. economy and monetary policy in DC. Cleveland Fed President Mester, another hawkish member, will speak at the University of Richmond, VA; she is also widely expected to pose an optimistic view on the economy and support higher interest rates. Investors will focus on indications for the forthcoming stance on monetary policy.
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In the overnight session, U.S. Treasuries sold-off across the curve but have begun to regain some ground since market opened this morning.
The only print today was the release of the current account balance, which indicated that the U.S. deficit narrowed from the revised -$116.00 Billion to -$112.40 Billion in the fourth quarter according to the Bureau of Economic Analysis (BEA). The $3.60 Billion decrease in deficit was largely due to a $19.90 Billion increase in primary income surplus as well as a $17.50 Billion increase in the deficit of goods. The deficit currently represents 2.40% of the GDP vs. 2.50% in the third quarter.
Yesterday, Chicago Fed President Evans reinforced that the Fed is looking to raise interest rates a total of 3 times this year but open to 4 hikes if the economy and inflation really picked up. Later today, Kansas City Fed President George (known to be one of the more hawkish members) will discuss the U.S. economy and monetary policy in DC. Cleveland Fed President Mester, another hawkish member, will speak at the University of Richmond, VA; she is also widely expected to pose an optimistic view on the economy and support higher interest rates. Investors will focus on indications for the forthcoming stance on monetary policy.
The curve has bull-flattened with the UST 10-Year 0.2 bp down from prior closing.