The prospect of looser monetary policy from the Fed continued to dominate investor sentiment this morning. US equity index futures pointed to a higher open and Treasuries extended gain as well. However, investor sentiment still remains fragile as optimism over a potential rate cut is offset by ongoing trade disputes. President Trump said “not nearly enough” progress was made at the first discussion with Mexico over tariffs but the talks are set to continue today. He also told reporters that tariffs on China could go up by another $300 billion if necessary without giving details on what goods could be targeted. The People’s Bank of China injected 500 billion yuan into their financial system to ease liquidity concerns after the government’s first seizure of a bank in more than two decades last month drove up funding costs. Elsewhere, WTI crude extended losses from prior session, trading below $52 a barrel this morning.
The US Trade Deficit narrowed in April to $50.8 billion from a revised $51.9 billion in March. Initial Jobless Claims continued to show stability by printing an unchanged reading from a revised prior of 218k. Continuing Claims edged higher to 1682k from an upwardly revised prior of 1662k. The consensus called for 215k and 1660k for both claims, respectively. Lastly, Bloomberg Consumer Comfort came in higher than prior reading of 60.80 at 61.70. Later today, the US Treasury is scheduled to auction off $40 billion of 4-week bills and $35 billion of 8-week bills at 8:30 AM (PT).
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The prospect of looser monetary policy from the Fed continued to dominate investor sentiment this morning. US equity index futures pointed to a higher open and Treasuries extended gain as well. However, investor sentiment still remains fragile as optimism over a potential rate cut is offset by ongoing trade disputes. President Trump said “not nearly enough” progress was made at the first discussion with Mexico over tariffs but the talks are set to continue today. He also told reporters that tariffs on China could go up by another $300 billion if necessary without giving details on what goods could be targeted. The People’s Bank of China injected 500 billion yuan into their financial system to ease liquidity concerns after the government’s first seizure of a bank in more than two decades last month drove up funding costs. Elsewhere, WTI crude extended losses from prior session, trading below $52 a barrel this morning.
The US Trade Deficit narrowed in April to $50.8 billion from a revised $51.9 billion in March. Initial Jobless Claims continued to show stability by printing an unchanged reading from a revised prior of 218k. Continuing Claims edged higher to 1682k from an upwardly revised prior of 1662k. The consensus called for 215k and 1660k for both claims, respectively. Lastly, Bloomberg Consumer Comfort came in higher than prior reading of 60.80 at 61.70. Later today, the US Treasury is scheduled to auction off $40 billion of 4-week bills and $35 billion of 8-week bills at 8:30 AM (PT).
The curve has bull-flattened with UST 10-Year yield down 3.64 bps.U.S. Federal Reserve ReleasesBeige
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