US equity futures slipped and Treasuries edged higher this morning as investors awaited commentary from the Fed Chair Powell on the economy and monetary policy. Also, mounting geopolitical tensions added to the risk-off mood. As a retaliation of shooting down a US Navy drone last week, President Trump imposed sanctions on Iran’s Supreme leader and eight senior military commanders where they would be denied access to financial resources. WTI crude ended its three-day rally as investors weighed the news against the potential production cut extensions by OPEC and its allies. On the trade front, US officials downplayed the prospect of a breakthrough days ahead of highly-anticipated meeting between President Trump and China’s Xi at the G-20 meeting in Japan this week.
FHFA House Price Index in April slightly edged higher to 0.40% from 0.10% prior while consensus called for a 0.20% increase. S&P CoreLogic CS 20-City Home Composite Price Index remained unchanged MoM, and increased 2.54% YoY, following a downwardly revised prior of 2.61%. Today’s YoY data marked the slowest pace of price gains since August 2012 and 13th straight month of price deceleration. New Home Sales in May also dropped to 626k, following an upwardly revised prior of 679k. Richmond Fed Manufacturing Index in June came in above consensus of 2.00 at 3.00. Lastly, Conference Board Consumer Confidence in June slipped to 121.50 from a downwardly revised prior of 131.30 while consensus called for 131.00. Later today, the US Treasury is scheduled to auction off $40 billion of 2-year notes at 10 AM (PT).
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US equity futures slipped and Treasuries edged higher this morning as investors awaited commentary from the Fed Chair Powell on the economy and monetary policy. Also, mounting geopolitical tensions added to the risk-off mood. As a retaliation of shooting down a US Navy drone last week, President Trump imposed sanctions on Iran’s Supreme leader and eight senior military commanders where they would be denied access to financial resources. WTI crude ended its three-day rally as investors weighed the news against the potential production cut extensions by OPEC and its allies. On the trade front, US officials downplayed the prospect of a breakthrough days ahead of highly-anticipated meeting between President Trump and China’s Xi at the G-20 meeting in Japan this week.
FHFA House Price Index in April slightly edged higher to 0.40% from 0.10% prior while consensus called for a 0.20% increase. S&P CoreLogic CS 20-City Home Composite Price Index remained unchanged MoM, and increased 2.54% YoY, following a downwardly revised prior of 2.61%. Today’s YoY data marked the slowest pace of price gains since August 2012 and 13th straight month of price deceleration. New Home Sales in May also dropped to 626k, following an upwardly revised prior of 679k. Richmond Fed Manufacturing Index in June came in above consensus of 2.00 at 3.00. Lastly, Conference Board Consumer Confidence in June slipped to 121.50 from a downwardly revised prior of 131.30 while consensus called for 131.00. Later today, the US Treasury is scheduled to auction off $40 billion of 2-year notes at 10 AM (PT).
The curve has bull-flattened with UST 10-Year yield down 2.76 bps.