Treasuries are little changed across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.859% after closing at 2.861% prior.
Treasuriesheld steady overnight ahead of Fed Chairman Powell’s scheduled appearance before the House Financial Services Committee this morning in which he will speak further on monetary policy and the current state of the economy. Yesterday in his semi-annual testimony before the Senate, Powell provided an upbeat assessment on the U.S. economy, reiterating that the best way forward is to gradually raise fed funds. The Fed’s latest Beige Book will also be available later today at 11:00 AM (PT) in anticipation of the FOMC’s next meeting in August.
On the economic calendar, we received the June Housing Starts which fell 12.30% month-over-month following a revised 4.80% increase in May. The 1173k unit rate received, which fell from 1337k revised prior, was lower than expected as consensus called for 1320k unit rate in June. Building Permits dropped 2.20% month-over-month after falling 4.60% in May, bringing the unit rate down from 1301k prior to 1273k in June. MBA Mortgage Applications fell 2.50% for the week ended July 13 after rising 2.50% the week prior. Purchase applications dropped 5.20% following a 6.50% increase the week prior, while refinancing activities rose 2.20% after falling 3.80% the week prior.
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Treasuries held steady overnight ahead of Fed Chairman Powell’s scheduled appearance before the House Financial Services Committee this morning in which he will speak further on monetary policy and the current state of the economy. Yesterday in his semi-annual testimony before the Senate, Powell provided an upbeat assessment on the U.S. economy, reiterating that the best way forward is to gradually raise fed funds. The Fed’s latest Beige Book will also be available later today at 11:00 AM (PT) in anticipation of the FOMC’s next meeting in August.
On the economic calendar, we received the June Housing Starts which fell 12.30% month-over-month following a revised 4.80% increase in May. The 1173k unit rate received, which fell from 1337k revised prior, was lower than expected as consensus called for 1320k unit rate in June. Building Permits dropped 2.20% month-over-month after falling 4.60% in May, bringing the unit rate down from 1301k prior to 1273k in June. MBA Mortgage Applications fell 2.50% for the week ended July 13 after rising 2.50% the week prior. Purchase applications dropped 5.20% following a 6.50% increase the week prior, while refinancing activities rose 2.20% after falling 3.80% the week prior.
The curve has bull-steepened with the UST 10-Year yield down 0.2 bp from prior closing.