Treasuries are higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.905% after closing at 2.936% prior.
Yesterday Treasuriesrallied on the announcement of the European Central Bank to end its bond-buying program by the end of 2018 which sparked volatility in European assets. This morning, Treasury yields inched further down after President Trump announced tariffs on $50 Billion in Chinese imports while threatening to impose additional tariffs should China retaliate. China quickly vowed to strike back stating that it will also impose tariffs on imports from the U.S., reigniting fears of a trade war between two of the world’s biggest economies.
On the economic calendar, we received the June Empire Manufacturing which soared above expectations to its highest level in eight months at a reading of 25.00 versus 18.80 per consensus. Also on deck, we received the May Industrial Production report which fell 0.10% month-over-month following an upwardly revised 0.90% increase prior. Capacity Utilization also showed a slight drop month-over-month as the index came in at 77.90% from an upwardly revised 78.10% prior. Lastly, we received the June University of Michigan Sentiment which came in above expectations at 99.30 versus a reading level of 98.50 per consensus; prior reading remained unrevised at 98.00.
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Yesterday Treasuries rallied on the announcement of the European Central Bank to end its bond-buying program by the end of 2018 which sparked volatility in European assets. This morning, Treasury yields inched further down after President Trump announced tariffs on $50 Billion in Chinese imports while threatening to impose additional tariffs should China retaliate. China quickly vowed to strike back stating that it will also impose tariffs on imports from the U.S., reigniting fears of a trade war between two of the world’s biggest economies.
On the economic calendar, we received the June Empire Manufacturing which soared above expectations to its highest level in eight months at a reading of 25.00 versus 18.80 per consensus. Also on deck, we received the May Industrial Production report which fell 0.10% month-over-month following an upwardly revised 0.90% increase prior. Capacity Utilization also showed a slight drop month-over-month as the index came in at 77.90% from an upwardly revised 78.10% prior. Lastly, we received the June University of Michigan Sentiment which came in above expectations at 99.30 versus a reading level of 98.50 per consensus; prior reading remained unrevised at 98.00.
The curve has bull-flattened with the UST 10-Year yield down 3.1 bps from prior closing.
Have A Nice Weekend!