Treasuries slumped overnight as China continues its economic recovery after reporting better-than-expected lending growth. Treasuries extended losses after bank earnings season kicked off with JPMorgan and Wells Fargo both beating estimates. U.S. Stock Futures rose amid the surge in risk-on sentiment, while the dollar weakened against most major currencies. Elsewhere, the battle to be America’s top energy company further intensified after Chevron Corp. agreed to buy Anadarko Petroleum Corp. for $33 billion. West Texas oil futures climbed and headed into a sixth consecutive weekly advance in its best streak since 2016.
Today’s economic calendar wraps up the week on a quiet note with only the Import and Export Price indices for the month of March, along with the preliminary reading of the University of Michigan Sentiment for the month of April. Import prices rose 0.60% following an upwardly revised 1.00% increase in February, while its YoY level remained unchanged versus a 0.80% decline prior. Export prices rose 0.70% following a similar revised gain prior, bringing its YoY level up 0.60% versus 0.30% prior. The preliminary reading of the Michigan Sentiment came in lower than expected at 96.90 versus 98.20 per consensus following a 98.40 reading prior. Next week’s central bank calendar includes a variety of speakers leading up to the latest release of the Fed’s Beige Book on Wednesday.
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Treasuries slumped overnight as China continues its economic recovery after reporting better-than-expected lending growth. Treasuries extended losses after bank earnings season kicked off with JPMorgan and Wells Fargo both beating estimates. U.S. Stock Futures rose amid the surge in risk-on sentiment, while the dollar weakened against most major currencies. Elsewhere, the battle to be America’s top energy company further intensified after Chevron Corp. agreed to buy Anadarko Petroleum Corp. for $33 billion. West Texas oil futures climbed and headed into a sixth consecutive weekly advance in its best streak since 2016.
Today’s economic calendar wraps up the week on a quiet note with only the Import and Export Price indices for the month of March, along with the preliminary reading of the University of Michigan Sentiment for the month of April. Import prices rose 0.60% following an upwardly revised 1.00% increase in February, while its YoY level remained unchanged versus a 0.80% decline prior. Export prices rose 0.70% following a similar revised gain prior, bringing its YoY level up 0.60% versus 0.30% prior. The preliminary reading of the Michigan Sentiment came in lower than expected at 96.90 versus 98.20 per consensus following a 98.40 reading prior. Next week’s central bank calendar includes a variety of speakers leading up to the latest release of the Fed’s Beige Book on Wednesday.
The curve has bear-steepened with the UST 10-Year yield up 4.6 bps from prior closing.