Growing concerns over slowdown in global economy were renewed as Germany printed the deepest slump in manufacturing in over six years. The news reverberated through markets; ultimately driving US stocks index futures down as well. Nike also pressured equity futures as its stocks fell nearly 5% from weak quarterly sales growth. On the trade front, despite of upbeat sentiment toward reaching a deal soon from President Trump, American officials downplayed the chances of a breakthrough soon as both sides kept going back and forth. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will be in Beijing for meetings at the end of next week, and Chinese Vice Premier Liu He is scheduled to attend meetings in Washington in April. Treasuries sharply advanced and WTI crude declined below $60 a barrel this morning.
Markit US Manufacturing PMI in March fell to 52.50 from 53.00 prior vs. 53.50 consensus, driving the treasury yields further down this morning. Wholesale Inventories in January increased to 1.20% from 1.10% prior, well above estimate of 0.10%. Existing Home Sales in February, on the other hand, came in higher at 5.51m from 4.93m revised prior vs. 5.10m consensus. Lastly, Monthly Budget Statement for February will be released at 11:00 AM (PT) today.
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Growing concerns over slowdown in global economy were renewed as Germany printed the deepest slump in manufacturing in over six years. The news reverberated through markets; ultimately driving US stocks index futures down as well. Nike also pressured equity futures as its stocks fell nearly 5% from weak quarterly sales growth. On the trade front, despite of upbeat sentiment toward reaching a deal soon from President Trump, American officials downplayed the chances of a breakthrough soon as both sides kept going back and forth. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will be in Beijing for meetings at the end of next week, and Chinese Vice Premier Liu He is scheduled to attend meetings in Washington in April. Treasuries sharply advanced and WTI crude declined below $60 a barrel this morning.
Markit US Manufacturing PMI in March fell to 52.50 from 53.00 prior vs. 53.50 consensus, driving the treasury yields further down this morning. Wholesale Inventories in January increased to 1.20% from 1.10% prior, well above estimate of 0.10%. Existing Home Sales in February, on the other hand, came in higher at 5.51m from 4.93m revised prior vs. 5.10m consensus. Lastly, Monthly Budget Statement for February will be released at 11:00 AM (PT) today.
The curve has bull-flattened with UST 10-Year yield down 8.37 bps.