Treasury Yields Slightly Climb as Investors Await Further Trade Developments
Market opened today’s session with treasuries nearly unchangedacross all maturities. 10-Yeartreasury yield is at 2.4068, 0.53 bp increased from prior closing of 2.4015.
US equity futures edged higher and treasuries remained steady as the dollar gained this morning. The rebound in equity came after President Trump confirmed that he will meet with his Chinese counterpart Xi at G-20 summit next month and predicted that the talks with China “are going to be very successful”. However, the US Trade Representative’s office still released the list of $300 billion of Chinese imports which will be subject to another 25.00% tariffs imposition. This prolonged standoff kept investors on edge of their seats as they feared it might lead to worsened global growth. In corporate news, Alibaba, Tencent, Cisco, and Nvidia are among the companies which are scheduled to post their earnings results this week. Elsewhere, WTI crude advanced this morning as Saudi Arabia reported that unidentified drones attacked two pumping stations, muddying the oil supply outlook.
NFIB Small Business Optimism displayed optimism in April, printing a reading of 103.50 above consensus of 102.00, following 101.80 in March. However, it may be a different story for May as the new tariffs between the US and China can affect the reading. The headline Import Price Index in April dropped to 0.20% from 0.60% prior vs. 0.70% consensus. The core also fell to -0.60% from 0.20% prior vs. 0.20% consensus. Later today, Kansas City Fed President George will speak to the Economic Club of Minnesota in Minneapolis and San Francisco Fed President Daly will speak at Northwestern University in Evanston, Illinois.
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US equity futures edged higher and treasuries remained steady as the dollar gained this morning. The rebound in equity came after President Trump confirmed that he will meet with his Chinese counterpart Xi at G-20 summit next month and predicted that the talks with China “are going to be very successful”. However, the US Trade Representative’s office still released the list of $300 billion of Chinese imports which will be subject to another 25.00% tariffs imposition. This prolonged standoff kept investors on edge of their seats as they feared it might lead to worsened global growth. In corporate news, Alibaba, Tencent, Cisco, and Nvidia are among the companies which are scheduled to post their earnings results this week. Elsewhere, WTI crude advanced this morning as Saudi Arabia reported that unidentified drones attacked two pumping stations, muddying the oil supply outlook.
NFIB Small Business Optimism displayed optimism in April, printing a reading of 103.50 above consensus of 102.00, following 101.80 in March. However, it may be a different story for May as the new tariffs between the US and China can affect the reading. The headline Import Price Index in April dropped to 0.20% from 0.60% prior vs. 0.70% consensus. The core also fell to -0.60% from 0.20% prior vs. 0.20% consensus. Later today, Kansas City Fed President George will speak to the Economic Club of Minnesota in Minneapolis and San Francisco Fed President Daly will speak at Northwestern University in Evanston, Illinois.
The curve has bear-steepened with UST 10-Year yield up 0.53 bp.