With safe haven displaying dominance, Treasuries advanced this morning as stocks pointed to a lower open after China extended retaliatory tariffs on imports from the US. The Dow started this week with six straight weeks of losses, marking its longest weekly slide since 2011. On the other hand, the 2-YearTreasury yield headed for the biggest two-day decline since January 2008 as the spat between the US and China intensified over the weekend. China is also now targeting FedEx in a probe after the company failed to deliver items to the correct addresses. Two packages containing documents being shipped to Huawei in China were diverted to the US without authorization and FedEx has apologized for the delivery errors. As President Trump slapped 5.00% tariffs on all imports from Mexico over illegal immigration last week, many analysts revised their economic forecasts to higher probability of a recession later this year. Elsewhere, WTI crude traded over $54 a barrel this morning.
Markit US Manufacturing PMI in May remained almost unchanged at 50.50 following 50.60 in prior month. ISM Manufacturing in May also edged lower to 52.10 from 52.80 prior vs. 53.00 consensus. ISM Prices Paid in May, however, climbed to 53.20 from 50.00 prior vs. 51.00 consensus. Lastly, Construction Spending in April remained flat from an upwardly revised prior of 0.10% vs. 0.40% consensus. Later today, the US Treasury is scheduled to auction off $36 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT).
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With safe haven displaying dominance, Treasuries advanced this morning as stocks pointed to a lower open after China extended retaliatory tariffs on imports from the US. The Dow started this week with six straight weeks of losses, marking its longest weekly slide since 2011. On the other hand, the 2-Year Treasury yield headed for the biggest two-day decline since January 2008 as the spat between the US and China intensified over the weekend. China is also now targeting FedEx in a probe after the company failed to deliver items to the correct addresses. Two packages containing documents being shipped to Huawei in China were diverted to the US without authorization and FedEx has apologized for the delivery errors. As President Trump slapped 5.00% tariffs on all imports from Mexico over illegal immigration last week, many analysts revised their economic forecasts to higher probability of a recession later this year. Elsewhere, WTI crude traded over $54 a barrel this morning.
Markit US Manufacturing PMI in May remained almost unchanged at 50.50 following 50.60 in prior month. ISM Manufacturing in May also edged lower to 52.10 from 52.80 prior vs. 53.00 consensus. ISM Prices Paid in May, however, climbed to 53.20 from 50.00 prior vs. 51.00 consensus. Lastly, Construction Spending in April remained flat from an upwardly revised prior of 0.10% vs. 0.40% consensus. Later today, the US Treasury is scheduled to auction off $36 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT).
The curve has bull-steepened with UST 10-Year yield down 1.91 bps.U.S. Federal Reserve ReleasesBeige
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