Although the spread between the 3-month Treasury bill yield and the 10-YearTreasury note yield remained negative, creating an inverted yield curve, investors’ concerns over the potential economic recession started assuaging. US equity index futures climbed this morning with Treasuries inching lower. On Brexit front, the UK Parliament seized control of the Brexit process last night from Prime Minister May and they will hold a series of indicative votes on alternative strategies which will include a second referendum, leaving the EU without a deal, and even canceling Brexit altogether. Although these will only be indicative, Prime Minister May may be pressured to follow a clear majority decision as time is running out. Elsewhere, WTI crude advanced above $60 a barrel and gold retreated for the first time in three days this morning.
Housing Starts continued to lag in February as it printed 1162k vs. 1273k revised prior and 1210k consensus. Building Permits also fell to 1296k from 1317k revised prior and 1305k consensus. FHFA House Price Index in January increased 0.60% from 0.30% prior vs. 0.40% estimate. However, S&P CoreLogic Case-Shiller 20-City Composite Home Price increased only 0.11% in January, short of both 0.17% revised prior and 0.30% consensus. Richmond Fed Manufacturing Index in March came in line with consensus of 10.00 and Conference Board Consumer Confidence index in March fell to 124.10 from 131.40 prior vs. 132.50 consensus. The US Treasury is scheduled to auction off $26 billion of 52-week bills at 8:30 AM (PT) and $40 billion of 2-Year notes at 10:00 AM (PT).
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Although the spread between the 3-month Treasury bill yield and the 10-Year Treasury note yield remained negative, creating an inverted yield curve, investors’ concerns over the potential economic recession started assuaging. US equity index futures climbed this morning with Treasuries inching lower. On Brexit front, the UK Parliament seized control of the Brexit process last night from Prime Minister May and they will hold a series of indicative votes on alternative strategies which will include a second referendum, leaving the EU without a deal, and even canceling Brexit altogether. Although these will only be indicative, Prime Minister May may be pressured to follow a clear majority decision as time is running out. Elsewhere, WTI crude advanced above $60 a barrel and gold retreated for the first time in three days this morning.
Housing Starts continued to lag in February as it printed 1162k vs. 1273k revised prior and 1210k consensus. Building Permits also fell to 1296k from 1317k revised prior and 1305k consensus. FHFA House Price Index in January increased 0.60% from 0.30% prior vs. 0.40% estimate. However, S&P CoreLogic Case-Shiller 20-City Composite Home Price increased only 0.11% in January, short of both 0.17% revised prior and 0.30% consensus. Richmond Fed Manufacturing Index in March came in line with consensus of 10.00 and Conference Board Consumer Confidence index in March fell to 124.10 from 131.40 prior vs. 132.50 consensus. The US Treasury is scheduled to auction off $26 billion of 52-week bills at 8:30 AM (PT) and $40 billion of 2-Year notes at 10:00 AM (PT).
The curve has bear-flattened with UST 10-Year yield up 3.35 bps.