Treasuries are slightly lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.285% after closing at 2.281% prior.
Today the market will be focused on the release of the FOMC Minutes from the Fed’s May 3rd meeting, which will be released later this morning at 11:00 AM (PT). Investors expect a rather hawkish tone from the Minutes in light of low realized inflation from recent economic conditions, which could price in a rate hike in June.
The MBA Mortgage Applications for the week ending on May 19th rose 4.40% after falling 4.10% the week prior. Purchase applications dropped 0.80% after falling 2.70% in the week prior, while refinancing activities increased 10.50% after a 5.70% drop the week prior. The March FHFA House Price Index came in slightly above expectations at 0.60% increase in home prices after a 0.80% rise in the month prior. Existing Home Sales for the month of April came in below expectations at 5.57m versus a downwardly revised 5.70m in March.
There are two scheduled Fed Speaks today including Dallas Fed President Kaplan at 3:00 PM (PT) in Toronto, and Minneapolis Fed President Kashkari at 3:30 PM (PT). At 10:00 AM (PT), Treasury will auction $34 Billion 5-Year Notes.
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Today the market will be focused on the release of the FOMC Minutes from the Fed’s May 3rd meeting, which will be released later this morning at 11:00 AM (PT). Investors expect a rather hawkish tone from the Minutes in light of low realized inflation from recent economic conditions, which could price in a rate hike in June.
The MBA Mortgage Applications for the week ending on May 19th rose 4.40% after falling 4.10% the week prior. Purchase applications dropped 0.80% after falling 2.70% in the week prior, while refinancing activities increased 10.50% after a 5.70% drop the week prior. The March FHFA House Price Index came in slightly above expectations at 0.60% increase in home prices after a 0.80% rise in the month prior. Existing Home Sales for the month of April came in below expectations at 5.57m versus a downwardly revised 5.70m in March.
There are two scheduled Fed Speaks today including Dallas Fed President Kaplan at 3:00 PM (PT) in Toronto, and Minneapolis Fed President Kashkari at 3:30 PM (PT). At 10:00 AM (PT), Treasury will auction $34 Billion 5-Year Notes.
The curve has bear-flattened with the UST 10-Year up 0.4 bp from prior closing.