Treasuries are higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.854% after closing at 2.878% prior.
Treasuriesralliedovernight as investors struggled to dissect the decision of the Trump administration to take a less confrontational approach toward Chinese investments in the U.S. Mixed signals from the administration also pushed U.S. Stocks higher and supported the dollar’s gains. On the economic calendar, we received the May Wholesale Inventories which rose above expectations at 0.50% versus a 0.20% gain per consensus. May Durable Goods Orders dropped 0.60% following a revised drop of 1.00% prior, and Durables Excluding Transportation fell 0.30% after an upwardly revised increase of 1.90% prior. Capital Goods Orders Nondefense declined 0.20% in May after gaining 2.30% revised prior, and Capital Goods Shipments Nondefense fell 0.10% following a revised 1.00% increase prior.
We also received the May Pending Home Sales which fell 0.50% month-over-month following a drop of 1.30% in April; Pending Home Sales fell 2.80% year-over-year following a gain of 0.30% revised prior. MBA Mortgage Applications for the week ended June 22 dropped 4.90% after increasing by 5.10% in activities the week prior. Purchase applications fell 5.90% after rising 4.30% the week prior, and refinancing activities dropped 3.50% after rising 6.10% the week prior. Boston Fed President Rosengren is scheduled to speak on Ethics and Economics at 9:15 AM (PT) in Washington. Then later today at 10:00 AM (PT), Treasury will auction $36 Billion 5-Year Notes in the second of three bondauctions scheduled for the week.
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Treasuries rallied overnight as investors struggled to dissect the decision of the Trump administration to take a less confrontational approach toward Chinese investments in the U.S. Mixed signals from the administration also pushed U.S. Stocks higher and supported the dollar’s gains. On the economic calendar, we received the May Wholesale Inventories which rose above expectations at 0.50% versus a 0.20% gain per consensus. May Durable Goods Orders dropped 0.60% following a revised drop of 1.00% prior, and Durables Excluding Transportation fell 0.30% after an upwardly revised increase of 1.90% prior. Capital Goods Orders Nondefense declined 0.20% in May after gaining 2.30% revised prior, and Capital Goods Shipments Nondefense fell 0.10% following a revised 1.00% increase prior.
We also received the May Pending Home Sales which fell 0.50% month-over-month following a drop of 1.30% in April; Pending Home Sales fell 2.80% year-over-year following a gain of 0.30% revised prior. MBA Mortgage Applications for the week ended June 22 dropped 4.90% after increasing by 5.10% in activities the week prior. Purchase applications fell 5.90% after rising 4.30% the week prior, and refinancing activities dropped 3.50% after rising 6.10% the week prior. Boston Fed President Rosengren is scheduled to speak on Ethics and Economics at 9:15 AM (PT) in Washington. Then later today at 10:00 AM (PT), Treasury will auction $36 Billion 5-Year Notes in the second of three bond auctions scheduled for the week.
The curve has bull-flattened with the UST 10-Year yield down 2.4 bps from prior closing.