Treasuries are higher than yesterday at the opening of today’s session. The yield on the UST10-Year is currently at 2.958% after closing at 2.982% during the prior session.
Funding needs from the U.S. Treasury, anticipated to be up-sized during the quarter’s auction announcement next week, are expected to continue rising in the near future as tax cuts are projected to widen the fiscal deficit to over $1 Trillion by 2020 according to the Congressional Budgetary Office. JP Morgan Chase & Co. is now anticipating that Treasury’s annual debt sales will have doubled by the end of year to the tune of $1.44 Trillion. The growing debt issuance has partially pushed yields upward, impacting financing costs to borrowers, while the Fed also appears to be on track for more rates increases during the remainder of 2018.
Gross Domestic Product for the first quarter of the year rose at an annualized rate of 2.30%, beating a 2.00% forecast but softening from its previous 2.90% rise during the prior quarter, according to the Commerce Department this morning. Further, forecast University of Michigan’s series of indices for April were also released this morning. Consumer Sentiment scored 98.80, versus estimates of 98.00 and rising from 97.80; Consumer Expectations scored 88.40 versus 86.80 prior; 1-Year Expected Inflation came in at 2.70% versus 2.70% prior; and 5-10 Year Expected Inflation came in at 2.50% versus 2.40% prior. Finally, quarter-over-quarterPersonal Consumption for the first quarter registered a 1.10% change, matching survey but dropping from its 4.00% mark during the previous period.
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Funding needs from the U.S. Treasury, anticipated to be up-sized during the quarter’s auction announcement next week, are expected to continue rising in the near future as tax cuts are projected to widen the fiscal deficit to over $1 Trillion by 2020 according to the Congressional Budgetary Office. JP Morgan Chase & Co. is now anticipating that Treasury’s annual debt sales will have doubled by the end of year to the tune of $1.44 Trillion. The growing debt issuance has partially pushed yields upward, impacting financing costs to borrowers, while the Fed also appears to be on track for more rates increases during the remainder of 2018.
Gross Domestic Product for the first quarter of the year rose at an annualized rate of 2.30%, beating a 2.00% forecast but softening from its previous 2.90% rise during the prior quarter, according to the Commerce Department this morning. Further, forecast University of Michigan’s series of indices for April were also released this morning. Consumer Sentiment scored 98.80, versus estimates of 98.00 and rising from 97.80; Consumer Expectations scored 88.40 versus 86.80 prior; 1-Year Expected Inflation came in at 2.70% versus 2.70% prior; and 5-10 Year Expected Inflation came in at 2.50% versus 2.40% prior. Finally, quarter-over-quarter Personal Consumption for the first quarter registered a 1.10% change, matching survey but dropping from its 4.00% mark during the previous period.
The curve has bull-flattened with the UST 10-Year yield down 2.4 bps from prior closing.
Have A Great Weekend!