Treasuries are higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.929% after closing at 2.978% prior.
Treasuriesrallied overnight and into the open as investors continued to weigh in on geopolitical turmoil. Spanish bonds fell as investors reacted to growing support for a no-confidence vote against Prime Minster Mariano Rajoy over a corruption scandal. Political concerns have also mounted over the leadership in Italy sparked by the nascent populist coalition. U.S. stocks fell while the dollar gained with Treasuries.
This morning we received the Durable Goods Orders for April which fell 1.70% after an upwardly revised 2.70% increase in March. The headline durable goods came in weaker than expected as consensus called for a 1.30% decrease month-over-month. Excluding transportation, durable goods rose better than expected at 0.90% versus a 0.50% increase per consensus following a 0.40% increase in March. Moreover, Capital Goods Orders Nondefense excluding aircraft rose 1.00% after a downwardly revised 0.90% decrease prior. Lastly, we received the University of Michigan Sentiment for May which came in below expectations at 98.00 versus 98.80 per consensus.
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Treasuries rallied overnight and into the open as investors continued to weigh in on geopolitical turmoil. Spanish bonds fell as investors reacted to growing support for a no-confidence vote against Prime Minster Mariano Rajoy over a corruption scandal. Political concerns have also mounted over the leadership in Italy sparked by the nascent populist coalition. U.S. stocks fell while the dollar gained with Treasuries.
This morning we received the Durable Goods Orders for April which fell 1.70% after an upwardly revised 2.70% increase in March. The headline durable goods came in weaker than expected as consensus called for a 1.30% decrease month-over-month. Excluding transportation, durable goods rose better than expected at 0.90% versus a 0.50% increase per consensus following a 0.40% increase in March. Moreover, Capital Goods Orders Nondefense excluding aircraft rose 1.00% after a downwardly revised 0.90% decrease prior. Lastly, we received the University of Michigan Sentiment for May which came in below expectations at 98.00 versus 98.80 per consensus.
The curve has bull-flattened with the UST 10-Year yield down 4.9 bps from prior closing.
Have A Nice Weekend!