Treasuries are lower than yesterday at the opening of today’s session. The yield on the UST10-Year is currently at 2.991% after closing at 2.976% during the prior session.
The yield on the 10-YearU.S. Treasury note rose above 3% for the first time since 2014 at the opening of trading this morning. The breach on this psychological threshold for traders comes amid market concerns that the U.S. budget deficit will exceed $1 Trillion by 2020 according to the Congressional Budget Office. Further, with the Federal Reserve both signaling to rate increases and balance sheet downsizing, expectations are growing for increased debt. The Fed currently forecasts two additional rate increases in 2018.
On the economic calendar today, month-over-monthFHFA House Price Index rose 0.60% during February, matching survey but dropping from its previous 0.90% revised mark. Year-over-yearS&P CoreLogic 20-City Home Prices during February also rose by 6.80%, exceeding estimates of 6.35% and rising above its 6.43% previous revised mark. Also in today, New Home Sales for March reached 694k, above estimates of 630k and previous revised mark of 667k; while month-over-month New Home Sales for March rose 4.00%, exceeding survey of 1.90% and prior revised mark of 3.60%. Finally, the Conference Board Consumer Confidence scored 128.70 during April, above survey of 126.00 and prior 127.00 revised mark; while Conference Board Expectations for the same period scored 108.10 versus 106.20 prior.
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The yield on the 10-Year U.S. Treasury note rose above 3% for the first time since 2014 at the opening of trading this morning. The breach on this psychological threshold for traders comes amid market concerns that the U.S. budget deficit will exceed $1 Trillion by 2020 according to the Congressional Budget Office. Further, with the Federal Reserve both signaling to rate increases and balance sheet downsizing, expectations are growing for increased debt. The Fed currently forecasts two additional rate increases in 2018.
On the economic calendar today, month-over-month FHFA House Price Index rose 0.60% during February, matching survey but dropping from its previous 0.90% revised mark. Year-over-year S&P CoreLogic 20-City Home Prices during February also rose by 6.80%, exceeding estimates of 6.35% and rising above its 6.43% previous revised mark. Also in today, New Home Sales for March reached 694k, above estimates of 630k and previous revised mark of 667k; while month-over-month New Home Sales for March rose 4.00%, exceeding survey of 1.90% and prior revised mark of 3.60%. Finally, the Conference Board Consumer Confidence scored 128.70 during April, above survey of 126.00 and prior 127.00 revised mark; while Conference Board Expectations for the same period scored 108.10 versus 106.20 prior.
The curve has bear-steepened with the UST 10-Year yield up 1.5 bps from prior closing.