Treasury Yields Edge Higher ahead of Corporate Earnings Season
Market opened today’s session with treasuriesslightly inched lower across all maturities. 10-Yeartreasury yield is at 2.5007, 0.53 bp increased from prior closing of 2.4954.
Market kicked off this week in a cautious mood with main focus attuned to corporate earnings results. With major US banks set to post their results this week including JP Morgan Chase and Wells Fargo, many economists warned that this upcoming earnings season could be the first quarter of contracting results since 2016. Without further developments from the trade front, President Trump pressured the Fed once again last week to sustain growth. Last Friday, he said that the US economy would climb like a “rocket ship” if the Fed were to cut interest rates. On Brexit front, with April 12th being a deadline to leave the EU, either Brexit will have happened or it will be delayed by this Friday. Elsewhere, WTI crude continued to trade over $63 a barrel this morning.
Factory Orders in February came in line with expectation of -0.50%, a 0.50% decline from a revised prior of 0.00%. However, the coreFactory Orders climbed to 0.30% from a revised prior of -0.10%. Durable Goods Orders in February came in unchanged from prior and with consensus of -1.60%. The core fell to -0.10% from prior of 0.10% while consensus also called for a 0.10% increase. The US Treasury is scheduled to auction off $42 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT) today. On Wednesday, the minutes from March FOMC meeting will be released at 11:00 AM (PT).
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Market kicked off this week in a cautious mood with main focus attuned to corporate earnings results. With major US banks set to post their results this week including JP Morgan Chase and Wells Fargo, many economists warned that this upcoming earnings season could be the first quarter of contracting results since 2016. Without further developments from the trade front, President Trump pressured the Fed once again last week to sustain growth. Last Friday, he said that the US economy would climb like a “rocket ship” if the Fed were to cut interest rates. On Brexit front, with April 12th being a deadline to leave the EU, either Brexit will have happened or it will be delayed by this Friday. Elsewhere, WTI crude continued to trade over $63 a barrel this morning.
Factory Orders in February came in line with expectation of -0.50%, a 0.50% decline from a revised prior of 0.00%. However, the core Factory Orders climbed to 0.30% from a revised prior of -0.10%. Durable Goods Orders in February came in unchanged from prior and with consensus of -1.60%. The core fell to -0.10% from prior of 0.10% while consensus also called for a 0.10% increase. The US Treasury is scheduled to auction off $42 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT) today. On Wednesday, the minutes from March FOMC meeting will be released at 11:00 AM (PT).
The curve has bear-steepened with UST 10-Year yield up 0.53 bp.