Treasuries are moderately lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.909% after closing at 2.859% prior.
Treasuriesfell to session lows this morning after the May employment reports and average hourly earnings increases came in better than expected. Nonfarm Payrolls rose 223k month-over-month versus an expected 190k increase per consensus following a downwardly revised 159k increase in April. Private Payrolls rose 218k month-over-month versus an expected 190k increase per consensus after a downwardly revised 162k rise prior. Unemployment Rate in May fell to 3.80% month-over-month from 3.90% in April. Furthermore, Average Hourly Earnings increased 0.30% in May versus an estimated 0.20% rise per consensus after a slight 0.10% increase prior; Average Hourly Earnings jumped to 2.70% year-over-year from 2.60% prior.
We also received the final reading of the May Markit US Manufacturing PMI which came in slightly below expectations at 56.40 versus 56.60 per consensus. The April Construction Spending came in stronger than expected at 1.80% versus 0.80% per consensus after dropping 1.70% in March. Lastly, the May ISM Manufacturing reading bested expectations at 58.70 versus a 58.20 survey, while the ISM Prices Paid reading came in at 79.50 sustaining a strong reading level from 79.30 prior.
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Treasuries fell to session lows this morning after the May employment reports and average hourly earnings increases came in better than expected. Nonfarm Payrolls rose 223k month-over-month versus an expected 190k increase per consensus following a downwardly revised 159k increase in April. Private Payrolls rose 218k month-over-month versus an expected 190k increase per consensus after a downwardly revised 162k rise prior. Unemployment Rate in May fell to 3.80% month-over-month from 3.90% in April. Furthermore, Average Hourly Earnings increased 0.30% in May versus an estimated 0.20% rise per consensus after a slight 0.10% increase prior; Average Hourly Earnings jumped to 2.70% year-over-year from 2.60% prior.
We also received the final reading of the May Markit US Manufacturing PMI which came in slightly below expectations at 56.40 versus 56.60 per consensus. The April Construction Spending came in stronger than expected at 1.80% versus 0.80% per consensus after dropping 1.70% in March. Lastly, the May ISM Manufacturing reading bested expectations at 58.70 versus a 58.20 survey, while the ISM Prices Paid reading came in at 79.50 sustaining a strong reading level from 79.30 prior.
The curve has bear-flattened with the UST 10-Year yield up 5.0 bps from prior closing.
Have A Wonderful Weekend!