Treasuries are higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.834% after closing at 2.856% prior.
This morning the Trump administration announced that it will impose tariffs on steel and aluminum from key trading partners including the European Union, Mexico and Canada. U.S. stocks declined while Treasuries rose upon the announcement. Today’s busy economic calendar kicked off with the Personal Income data for April which rose as expected at 0.30% following a downwardly revised 0.20% increase in March. Personal Spending rose above expectations at 0.60% versus a 0.40% increase per consensus following an upwardly revised 0.50% increase in March. On the inflation side, the April PCE Deflator rose 0.20% month-over-month which came in line with expectations, keeping the PCE DeflatorYoY unchanged at 2.00% from prior. PCE Core also rose 0.20% in April, keeping the PCE CoreYoY unchanged at 1.80% from revised prior.
Initial Jobless Claims for the week ended May 26 fell 13k to 221k from 234k prior, while Continuing Claims for the week ended May 19 fell 16k to 1726k from a slightly revised 1742k prior. We also received the Chicago Purchasing Manager reading for May which came in above expectations at 62.70 versus 58.30 per consensus. Lastly, the April Pending Home Sales fell 1.30% month-over-month after an upwardly revised increase of 0.60% in March.
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This morning the Trump administration announced that it will impose tariffs on steel and aluminum from key trading partners including the European Union, Mexico and Canada. U.S. stocks declined while Treasuries rose upon the announcement. Today’s busy economic calendar kicked off with the Personal Income data for April which rose as expected at 0.30% following a downwardly revised 0.20% increase in March. Personal Spending rose above expectations at 0.60% versus a 0.40% increase per consensus following an upwardly revised 0.50% increase in March. On the inflation side, the April PCE Deflator rose 0.20% month-over-month which came in line with expectations, keeping the PCE Deflator YoY unchanged at 2.00% from prior. PCE Core also rose 0.20% in April, keeping the PCE Core YoY unchanged at 1.80% from revised prior.
Initial Jobless Claims for the week ended May 26 fell 13k to 221k from 234k prior, while Continuing Claims for the week ended May 19 fell 16k to 1726k from a slightly revised 1742k prior. We also received the Chicago Purchasing Manager reading for May which came in above expectations at 62.70 versus 58.30 per consensus. Lastly, the April Pending Home Sales fell 1.30% month-over-month after an upwardly revised increase of 0.60% in March.
The curve has bull-flattened with the UST 10-Year yield down 2.2 bps from prior closing.