Treasuries are higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 3.026% after closing at 3.061% prior.
Treasuriesrallied overnight and into the open as investors fled to safe-haven assets triggered by geopolitical concerns from Turkey to North Korea. With a combination of a widening current-account deficit and its central bank’s unwillingness to act, lira suffered its biggest loss in nearly a decade and rattled investors with concerns over Turkey’s financial stability. Moreover, President Trump expressed some pessimism regarding the June 12 summit with North Korea, stating that there’s a very substantial chance that the meeting will not take place.
This morning we received the MBA Mortgage Applications for the week ended May 18 which fell 2.60% in activities after dropping 2.70% prior. Purchase applications slowed 2.00% after falling 2.10% prior, while refinancing activities dropped 3.70% after falling 3.80% prior. We also received the May Markit US Manufacturing PMI which came in slightly above expectations at 56.60 versus 56.50 per consensus; Markit US Services PMI and Composite PMI both came in at 55.70. Also on the calendar, the April New Home Sales data reported a drop of 10k to 662k from a downwardly revised 672k prior. New Home Sales fell 1.50% month-over-month from a downwardly revised 2.00% increase in March. Lastly, the FOMC Minutes from the Fed’s May 2 meeting will be released later today at 11:00 AM (PT).
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Treasuries rallied overnight and into the open as investors fled to safe-haven assets triggered by geopolitical concerns from Turkey to North Korea. With a combination of a widening current-account deficit and its central bank’s unwillingness to act, lira suffered its biggest loss in nearly a decade and rattled investors with concerns over Turkey’s financial stability. Moreover, President Trump expressed some pessimism regarding the June 12 summit with North Korea, stating that there’s a very substantial chance that the meeting will not take place.
This morning we received the MBA Mortgage Applications for the week ended May 18 which fell 2.60% in activities after dropping 2.70% prior. Purchase applications slowed 2.00% after falling 2.10% prior, while refinancing activities dropped 3.70% after falling 3.80% prior. We also received the May Markit US Manufacturing PMI which came in slightly above expectations at 56.60 versus 56.50 per consensus; Markit US Services PMI and Composite PMI both came in at 55.70. Also on the calendar, the April New Home Sales data reported a drop of 10k to 662k from a downwardly revised 672k prior. New Home Sales fell 1.50% month-over-month from a downwardly revised 2.00% increase in March. Lastly, the FOMC Minutes from the Fed’s May 2 meeting will be released later today at 11:00 AM (PT).
The curve has bull-flattened with the UST 10-Year yield down 3.5 bps from prior closing.