Market opened today’s session with treasuries inching lower across all maturities. 10-Yeartreasury yield is at 2.5062, 3.21 bps increased from prior closing of 2.4741.
As Chinese Vice Premier Liu He will resume trade talks with his US counterparts in Washington today, it was reported that many outstanding issues have already been agreed in Beijing. Rising expectations that a breakthrough was nearing between the two countries attracted investors to riskier assets this morning. This positive sentiment got amplified even further as fears over global growth eased after China posted their stronger-than-expected services and composite PMI data. However, gains were capped by the US employment data released at 5:15 AM (PT), posting a weaker-than-expected reading. On Brexit front, Prime Minister May will meet her opposition Labour Party leader Jeremy Corbyn to find common ground and potential deal that would pass a vote in Parliament. Treasuries slid and WTI crude continued to trade over $62 a barrel this morning.
MBA Mortgage Applications Index rose 18.60% after rising 8.90% in prior week. Both purchases and refinances increased 3.40% and 38.50% after rising 6.40% and 12.40% in prior week. ADP Employment Change in March came in surprisingly low at 129k from upwardly revised prior of 197k vs. 175k consensus. Markit US Services PMI rose to 55.30 from both prior and consensus of 54.80, and Composite PMI also rose to 54.60 from 54.30 prior. Lastly, ISM Non-Manufacturing Index in March fell to 56.10 from 59.70 prior vs. 58.00 consensus. Minneapolis Fed President Kashkari will speak at North Dakota State University at 2:00 PM (PT) today. On Friday, the highly anticipated Nonfarm Payrolls data for March will be released.
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As Chinese Vice Premier Liu He will resume trade talks with his US counterparts in Washington today, it was reported that many outstanding issues have already been agreed in Beijing. Rising expectations that a breakthrough was nearing between the two countries attracted investors to riskier assets this morning. This positive sentiment got amplified even further as fears over global growth eased after China posted their stronger-than-expected services and composite PMI data. However, gains were capped by the US employment data released at 5:15 AM (PT), posting a weaker-than-expected reading. On Brexit front, Prime Minister May will meet her opposition Labour Party leader Jeremy Corbyn to find common ground and potential deal that would pass a vote in Parliament. Treasuries slid and WTI crude continued to trade over $62 a barrel this morning.
MBA Mortgage Applications Index rose 18.60% after rising 8.90% in prior week. Both purchases and refinances increased 3.40% and 38.50% after rising 6.40% and 12.40% in prior week. ADP Employment Change in March came in surprisingly low at 129k from upwardly revised prior of 197k vs. 175k consensus. Markit US Services PMI rose to 55.30 from both prior and consensus of 54.80, and Composite PMI also rose to 54.60 from 54.30 prior. Lastly, ISM Non-Manufacturing Index in March fell to 56.10 from 59.70 prior vs. 58.00 consensus. Minneapolis Fed President Kashkari will speak at North Dakota State University at 2:00 PM (PT) today. On Friday, the highly anticipated Nonfarm Payrolls data for March will be released.
The curve has bear-steepened with UST 10-Year yield up 3.21 bps.