Treasuries are higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.969% after closing at 2.994% prior.
Yesterday Treasuriesrallied from mid-session into the close as investors digested the FOMC Minutes from the Fed’s May policy meeting as more dovish than expected. Despite the recent firming in inflation, there was still uncertainty surrounding its outlook as Fed Officials deemed that “it was premature to conclude that inflation would remain at levels around 2 percent”. Nevertheless, the Minutes signaled that an interest rate hike is still probable at the conclusion of the FOMC meeting in June.
This morning we received the Initial Jobless Claims for the week ended May 19 which rose 11k to 234k from an upwardly revised 223k prior. Continuing Claims for the week ended May 12 rose 29k to 1741k from an upwardly revised 1712k prior. We also received the March FHFA House Price Index which rose 0.10% month-over-month following a 0.80% increase in February; consensus called for a 0.60% increase. Lastly, we received the Existing Home Sales for April which fell 2.50% to 5.46m rate month-over-month after increasing 1.10% to 5.60m in March. Later today at 10:00 AM (PT), Treasury will auction $30 billion 7-Year Notes.
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Yesterday Treasuries rallied from mid-session into the close as investors digested the FOMC Minutes from the Fed’s May policy meeting as more dovish than expected. Despite the recent firming in inflation, there was still uncertainty surrounding its outlook as Fed Officials deemed that “it was premature to conclude that inflation would remain at levels around 2 percent”. Nevertheless, the Minutes signaled that an interest rate hike is still probable at the conclusion of the FOMC meeting in June.
This morning we received the Initial Jobless Claims for the week ended May 19 which rose 11k to 234k from an upwardly revised 223k prior. Continuing Claims for the week ended May 12 rose 29k to 1741k from an upwardly revised 1712k prior. We also received the March FHFA House Price Index which rose 0.10% month-over-month following a 0.80% increase in February; consensus called for a 0.60% increase. Lastly, we received the Existing Home Sales for April which fell 2.50% to 5.46m rate month-over-month after increasing 1.10% to 5.60m in March. Later today at 10:00 AM (PT), Treasury will auction $30 billion 7-Year Notes.
The curve has bull-steepened with the UST 10-Year yield down 2.5 bps from prior closing.