Treasury Yields Slighltly Rose ahead of FOMC Meeting
Market opened today’s session with treasuries nudging downward across all maturities. 10-YearTreasury yield is at 2.0994, 1.90 bps increased from prior closing of 2.0804.
Stocks swung between gains and losses while Treasuries edges slightly lower this morning as investors braced themselves for central bank policy this week. The FOMC will start its two-day meeting tomorrow. While expectations for any policy change this time are fairly low, their statements and the press conference with Fed Chair Powell on Wednesday will be carefully parsed by investors for any clues about potential rate cuts in July and later this year. In Hong Kong, equities rose after the government suspended a controversial extradition bill which resulted in violent clashes between protesters and the police last week. In trade front, US Commerce Secretary Wilbur Ross reiterated that the prospect of a breakthrough is unlikely to emerge from a possible meeting between President Trump and his Chinese counterpart Xi at the G-20 summit in Osaka this month. Elsewhere, WTI crude declined, hovering $52 a barrel this morning.
Empire Manufacturing in June plunged to -8.60 from 17.80 in May while consensus called for 11.00, marking the lowest level since 2016. NAHB Housing Market Index in June also declined to 64.00 vs. 67.00 consensus, following a reading of 66.00 in May. Both Net Long-Term TIC Flows and Total Net TIC Flows from April will be released at 1:00 PM (PT). Also 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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Stocks swung between gains and losses while Treasuries edges slightly lower this morning as investors braced themselves for central bank policy this week. The FOMC will start its two-day meeting tomorrow. While expectations for any policy change this time are fairly low, their statements and the press conference with Fed Chair Powell on Wednesday will be carefully parsed by investors for any clues about potential rate cuts in July and later this year. In Hong Kong, equities rose after the government suspended a controversial extradition bill which resulted in violent clashes between protesters and the police last week. In trade front, US Commerce Secretary Wilbur Ross reiterated that the prospect of a breakthrough is unlikely to emerge from a possible meeting between President Trump and his Chinese counterpart Xi at the G-20 summit in Osaka this month. Elsewhere, WTI crude declined, hovering $52 a barrel this morning.
Empire Manufacturing in June plunged to -8.60 from 17.80 in May while consensus called for 11.00, marking the lowest level since 2016. NAHB Housing Market Index in June also declined to 64.00 vs. 67.00 consensus, following a reading of 66.00 in May. Both Net Long-Term TIC Flows and Total Net TIC Flows from April will be released at 1:00 PM (PT). Also 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 bear-flattened with UST 10-Year yield up 1.90 bps.