Treasuries are slightly lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.861% after closing at 2.859% prior.
Treasuriesinched higher overnight ahead of Fed Chairman Powell’s semi-annual testimony before the Senate Banking Committee scheduled this morning. Powell is expected to make the case for further Fed policy tightening, while markets wait to assess the tone of his testimony. On the economic calendar, we received the Industrial Production report for June which rose 0.60% month-over-month following a revised 0.50% decrease in May. Capacity Utilization rose 78.00% in June after a revised 77.70% increase in May, while the Manufacturing Production rose 0.80% in June after falling a revised 1.00% prior.
We also received the July NAHB Housing Market Index which came in line with expectations and remained unchanged from prior at 68.00. Present single family sales were unchanged from last month at 74.00, while future single family sales fell to 73.00 versus 75.00 last month. Later today at 1:00 PM (PT), the Total Net TIC Flows and Net Long-term TIC Flows for May will be released. Also scheduled later today, Kansas City Fed President George will speak on the economic outlook at an agricultural symposium at 5:00 PM (PT).
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Treasuries inched higher overnight ahead of Fed Chairman Powell’s semi-annual testimony before the Senate Banking Committee scheduled this morning. Powell is expected to make the case for further Fed policy tightening, while markets wait to assess the tone of his testimony. On the economic calendar, we received the Industrial Production report for June which rose 0.60% month-over-month following a revised 0.50% decrease in May. Capacity Utilization rose 78.00% in June after a revised 77.70% increase in May, while the Manufacturing Production rose 0.80% in June after falling a revised 1.00% prior.
We also received the July NAHB Housing Market Index which came in line with expectations and remained unchanged from prior at 68.00. Present single family sales were unchanged from last month at 74.00, while future single family sales fell to 73.00 versus 75.00 last month. Later today at 1:00 PM (PT), the Total Net TIC Flows and Net Long-term TIC Flows for May will be released. Also scheduled later today, Kansas City Fed President George will speak on the economic outlook at an agricultural symposium at 5:00 PM (PT).
The curve has bear-flattened with the UST 10-Year yield up 0.2 bp from prior closing.