Treasuries are lower across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.962% after closing at 2.956% prior.
Yesterday Treasuriessold-off as investors reacted to reports that the Bank of Japan may be tweaking its monetary policy that could essentially lead to the end an era of bond-buying by central bankers. The bondmarket reacted similarly last month when the European Central Bank announced that it would end its bond-buying program by the end of this year. Treasury yields inched even higher this morning after positive corporate earnings triggered a rally in U.S. Stocks. On the economic calendar, we received the FHFA House Price Index which rose 0.20% month-over-month in May following an upwardly revised 0.20% rise in April, coming in below an expected 0.30% increase per consensus.
We also received the July Markit US Manufacturing PMI which came in at a higher reading level than expected at 55.50 versus 55.10 per consensus; its prior level remained unchanged at 55.40. Markit US Services PMI came in slightly below expectations at 56.20 versus 56.30 per survey, and the Markit US Composite PMI pulled back to 55.90 versus its unrevised level of 56.20 prior. Lastly, we received the Richmond Fed Manufacturing Index for July which came in at 20.00 following an upwardly revised index of 21.00 prior. Later today at 10:00 AM (PT), U.S. will sell $35 Billion 2-Year Notes.
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Yesterday Treasuries sold-off as investors reacted to reports that the Bank of Japan may be tweaking its monetary policy that could essentially lead to the end an era of bond-buying by central bankers. The bond market reacted similarly last month when the European Central Bank announced that it would end its bond-buying program by the end of this year. Treasury yields inched even higher this morning after positive corporate earnings triggered a rally in U.S. Stocks. On the economic calendar, we received the FHFA House Price Index which rose 0.20% month-over-month in May following an upwardly revised 0.20% rise in April, coming in below an expected 0.30% increase per consensus.
We also received the July Markit US Manufacturing PMI which came in at a higher reading level than expected at 55.50 versus 55.10 per consensus; its prior level remained unchanged at 55.40. Markit US Services PMI came in slightly below expectations at 56.20 versus 56.30 per survey, and the Markit US Composite PMI pulled back to 55.90 versus its unrevised level of 56.20 prior. Lastly, we received the Richmond Fed Manufacturing Index for July which came in at 20.00 following an upwardly revised index of 21.00 prior. Later today at 10:00 AM (PT), U.S. will sell $35 Billion 2-Year Notes.
The curve has bear-flattened with the UST 10-Year yield up 0.6 bp from prior closing.