Treasuriesare slightly higher across the curve this morning after falling over the past two days. The UST10-Year yield is currently at 2.220% after closing at 2.233% prior.
Yesterday Treasury Secretary Mnuchin announced that the Trump administration's tax reform will be taking place “soon”, causing investors to flee from safe-haven assets into stocks, adding to a sell-off in bonds. The sell-off essentially erased all the gains that Treasuries made last week from geopolitical tensions with Syria and North Korea.
This morning we received April Markit US Manufacturing PMI, which came in below expectations at 52.80 versus 53.30 prior. Markit US Services PMI also came in below expectations at 52.50 versus 52.80 prior. Markit US Composite PMI slipped to 52.70 from 53.00 prior. Existing Home Sales for the month of March came in above expectations at 5.71 Million annual rate after a downwardly revised 5.47 Million in the month prior.
There are two Fed Speaks scheduled today from Minneapolis Fed President Kashkari and Fed Vice Chair Fischer. However, investors will be looking ahead to this weekend's first round of the French presidential election, with the announcement of the results coming in at 6:00 AM (PT)on Sunday.
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Yesterday Treasury Secretary Mnuchin announced that the Trump administration's tax reform will be taking place “soon”, causing investors to flee from safe-haven assets into stocks, adding to a sell-off in bonds. The sell-off essentially erased all the gains that Treasuries made last week from geopolitical tensions with Syria and North Korea.
This morning we received April Markit US Manufacturing PMI, which came in below expectations at 52.80 versus 53.30 prior. Markit US Services PMI also came in below expectations at 52.50 versus 52.80 prior. Markit US Composite PMI slipped to 52.70 from 53.00 prior. Existing Home Sales for the month of March came in above expectations at 5.71 Million annual rate after a downwardly revised 5.47 Million in the month prior.
There are two Fed Speaks scheduled today from Minneapolis Fed President Kashkari and Fed Vice Chair Fischer. However, investors will be looking ahead to this weekend's first round of the French presidential election, with the announcement of the results coming in at 6:00 AM (PT) on Sunday.
The curve has bull-flattened with the UST 10-Year down 1.3 bps from prior closing.
Have A Lovely Weekend!