Treasuries are slightly higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.238% after closing at 2.255% prior.
After selling off yesterday, the marketrallied back overnight as investors fled to safe-haven assets upon reports of a devastating terror attack in the U.K., where a suicide bombing at a concert in Manchester occurred. However, much of the overnight gains have been erased after solid European economic data were received this morning.
The preliminary Markit US Manufacturing PMI for May came in at 52.50 this morning, higher than the expected 53.00 per consensus. The preliminary US Services PMI for May came in at 54.00, a 0.90 gain from 53.10 prior, and the preliminary Markit US Composite PMI for May also came in with a slight gain at 53.90 from 53.20 prior. The April New Homes Sales came in well below expectations at 569k (610k consensus) after an upwardly revised 642k in March.
There are two scheduled Fed Speaks today including FedKashkari who will speak in Minneapolis on building economic well-being at 12:00 PM (PT), and FedHarker who will speak in New York on his economic outlook at 2:00 PM (PT). At 10:00 AM (PT), Treasury will auction $26 Billion 2-Year Notes.
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After selling off yesterday, the market rallied back overnight as investors fled to safe-haven assets upon reports of a devastating terror attack in the U.K., where a suicide bombing at a concert in Manchester occurred. However, much of the overnight gains have been erased after solid European economic data were received this morning.
The preliminary Markit US Manufacturing PMI for May came in at 52.50 this morning, higher than the expected 53.00 per consensus. The preliminary US Services PMI for May came in at 54.00, a 0.90 gain from 53.10 prior, and the preliminary Markit US Composite PMI for May also came in with a slight gain at 53.90 from 53.20 prior. The April New Homes Sales came in well below expectations at 569k (610k consensus) after an upwardly revised 642k in March.
There are two scheduled Fed Speaks today including Fed Kashkari who will speak in Minneapolis on building economic well-being at 12:00 PM (PT), and Fed Harker who will speak in New York on his economic outlook at 2:00 PM (PT). At 10:00 AM (PT), Treasury will auction $26 Billion 2-Year Notes.
The curve has bull-flattened with the UST 10-Year down 1.7 bps from prior closing.