Treasuries are higher across the curve this morning from the close of yesterday’s session. The UST10-Year yield is currently at 2.967% after closing at 2.995% prior.
This morning we received the Initial Jobless Claims for the week ended May 5th which came in below expectations at 211k versus 219k per consensus. Continuing Claims for the week ended April 28th rose 30k to 1790k from an upwardly revised 1760k the week prior. We also received April’s CPIinflation report showing that headline CPI rose lower than expected at 0.20% versus 0.30% per consensus. The core CPI, which excludes Food and Energy, also rose below expectations month-over-month at 0.10% versus 0.20% per consensus, reducing chances that inflationwill run significantly above the Fed’s target. Headline CPI is now at 2.50% year-over-year, up from 2.40% prior, while core CPI remained unchanged from prior at 2.10% year-over-year.
Average Weekly Earnings year-over-year rose just 0.40% in April versus an increase of 0.90% prior, while Average Hourly Earningsyear-over-year rose 0.20% following a downwardly revised increase of 0.30% prior. Later today at 10:00 AM (PT), Treasury will auction $17 Billion 30-Year Bonds. Then at 11:00 AM (PT), the Monthly Budget Statement for April will be released where a $212 Billion surplus is expected.
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This morning we received the Initial Jobless Claims for the week ended May 5th which came in below expectations at 211k versus 219k per consensus. Continuing Claims for the week ended April 28th rose 30k to 1790k from an upwardly revised 1760k the week prior. We also received April’s CPI inflation report showing that headline CPI rose lower than expected at 0.20% versus 0.30% per consensus. The core CPI, which excludes Food and Energy, also rose below expectations month-over-month at 0.10% versus 0.20% per consensus, reducing chances that inflation will run significantly above the Fed’s target. Headline CPI is now at 2.50% year-over-year, up from 2.40% prior, while core CPI remained unchanged from prior at 2.10% year-over-year.
Average Weekly Earnings year-over-year rose just 0.40% in April versus an increase of 0.90% prior, while Average Hourly Earnings year-over-year rose 0.20% following a downwardly revised increase of 0.30% prior. Later today at 10:00 AM (PT), Treasury will auction $17 Billion 30-Year Bonds. Then at 11:00 AM (PT), the Monthly Budget Statement for April will be released where a $212 Billion surplus is expected.
The curve has bull-flattened with the UST 10-Year yield down 2.8 bps from prior closing.