Treasuries are slightly lower across the curve this morning upon the release of better than expected PPI Final Demand and Ex Food and Energy data for April. The UST10-Year yield is currently at 2.421% after closing at 2.414% prior.
Today’s economic calendar provided more significant prints than the data that have been released earlier this week. The April Producer Prices Index rose 0.50% versus a slippage of 0.10% in March, besting the expected 0.20% per consensus, showing its largest gain since January. The corePPI, which excludes food and energy, jumped 0.40% in April after a 0.00% gain in March. Moreover, Initial Jobless Claims for the week ending on May 6th fell 2k to 236k from an unrevised 238k the week prior, and Continuing Claims for the week ending on April 29th fell to its lowest level in 29 years, coming in at 1918k versus an upwardly revised 1979k in the week prior.
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Today’s economic calendar provided more significant prints than the data that have been released earlier this week. The April Producer Prices Index rose 0.50% versus a slippage of 0.10% in March, besting the expected 0.20% per consensus, showing its largest gain since January. The core PPI, which excludes food and energy, jumped 0.40% in April after a 0.00% gain in March. Moreover, Initial Jobless Claims for the week ending on May 6th fell 2k to 236k from an unrevised 238k the week prior, and Continuing Claims for the week ending on April 29th fell to its lowest level in 29 years, coming in at 1918k versus an upwardly revised 1979k in the week prior.
Later today at 10:00 AM (PT), Treasury will auction $15 Billion of new 30-Year bonds. Tomorrow we will receive the Retail Sales and CPI prints for the month of April.
The curve has bear-flattened with the UST 10-Year down 0.7 bp from prior closing.