The UST10-Year yield is at 2.374% this morning after closing at 2.413% on Friday.
This morning, U.S. Treasuries continued to rally pushing yields down to levels last seen in late February, prior to the Fed rate hike. The drop in yields comes as political uncertainty around fiscal and monetary policies grow under the Trump presidency, highlighted by the failure to execute the health care reform (AHCA) last week. U.S. Equity Index fell for the seventh time in 8 days as stocks saw the biggest drop since November 2016. The dollar continues to extend losses, with the index down 0.43% to 98.95. In commodities, WTI crude oil is down 85 cents to 47.12 per barrel.
The only economic print today was the Dallas Fed Manufacturing Activity Index which dropped to 16.90 in March from 24.50 the previous month; the drop was driven by a decline in capacity utilization and shipments. In upcoming auctions, Department of U.S. Treasury is scheduled to sell $24 Billion in 2-Year notes today followed by $34 Billion in 5-Year notestomorrow.
In FedSpeak, Chicago Fed President Evans, one of the most dovish members of the FOMC, is scheduled to speak on current economic conditions and monetary policy. Later, Dallas Fed President Kaplan, who supports 3 rate hikes in 2017, will discuss economic conditions and the role of monetary policy.
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This morning, U.S. Treasuries continued to rally pushing yields down to levels last seen in late February, prior to the Fed rate hike. The drop in yields comes as political uncertainty around fiscal and monetary policies grow under the Trump presidency, highlighted by the failure to execute the health care reform (AHCA) last week. U.S. Equity Index fell for the seventh time in 8 days as stocks saw the biggest drop since November 2016. The dollar continues to extend losses, with the index down 0.43% to 98.95. In commodities, WTI crude oil is down 85 cents to 47.12 per barrel.
The only economic print today was the Dallas Fed Manufacturing Activity Index which dropped to 16.90 in March from 24.50 the previous month; the drop was driven by a decline in capacity utilization and shipments. In upcoming auctions, Department of U.S. Treasury is scheduled to sell $24 Billion in 2-Year notes today followed by $34 Billion in 5-Year notes tomorrow.
In FedSpeak, Chicago Fed President Evans, one of the most dovish members of the FOMC, is scheduled to speak on current economic conditions and monetary policy. Later, Dallas Fed President Kaplan, who supports 3 rate hikes in 2017, will discuss economic conditions and the role of monetary policy.
The curve has bull-flattened with the UST 10-Year 3.9 bps down from prior closing.