Treasury Yields Remain Nearly Unchanged as FOMC Meeting Begins
Market opened today’s session with treasuries drifting across all maturities. 10-YearTreasury yield is at 2.0649, 0.01 bp decreased from prior closing of 2.0650.
American stock futures declined as President Trump renewed criticism on China in a series of tweets, dampening hopes for a breakthrough with the two countries resuming talks today. He said that China continues to rip off America and they haven’t been keeping their pledges to buy US agricultural goods. Treasuries and the dollar drifted as investors awaited the Fed’s rate decision tomorrow which is widely expected to be a 25 basis point cut. As the market is perceived to have a rate cut already priced in, the focus will be on Fed Chair Powell’s post-meeting press conference for trajectory of interest rates in the near future. President Trump also chimed in on tomorrow’s rate decision that the Fed should enact a large rate cut. In corporate news, Apple is scheduled to report their earnings after the bell today with investors expecting a slump in iPhone sales. Under Armour slumped and Procter & Gamble gained on earnings results. Elsewhere, WTI crude advanced, trading above $57 a barrel this morning.
Personal Income in June came in line with both consensus and revised prior of 0.40%. Personal Spending in June also came in line with 0.30% consensus but below an upwardly revised prior of 0.50%. S&P CoreLogic CS 20-city home price index in May decelerated for a 14th straight month, underscoring moderation in the housing market. The YoY change slipped to 2.39% from a downwardly revised prior of 2.53% vs. 2.40% consensus. On the contrary, Pending Home Sales in June climbed to 2.80% above consensus of 0.50%, following 1.10% in prior. Lastly, Conference Board Consumer Confidence index in July also rose to 135.70 from an upwardly revised prior of 124.30.
The curve has steepened with UST10-Year yield down 0.01 bp.
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American stock futures declined as President Trump renewed criticism on China in a series of tweets, dampening hopes for a breakthrough with the two countries resuming talks today. He said that China continues to rip off America and they haven’t been keeping their pledges to buy US agricultural goods. Treasuries and the dollar drifted as investors awaited the Fed’s rate decision tomorrow which is widely expected to be a 25 basis point cut. As the market is perceived to have a rate cut already priced in, the focus will be on Fed Chair Powell’s post-meeting press conference for trajectory of interest rates in the near future. President Trump also chimed in on tomorrow’s rate decision that the Fed should enact a large rate cut. In corporate news, Apple is scheduled to report their earnings after the bell today with investors expecting a slump in iPhone sales. Under Armour slumped and Procter & Gamble gained on earnings results. Elsewhere, WTI crude advanced, trading above $57 a barrel this morning.
Personal Income in June came in line with both consensus and revised prior of 0.40%. Personal Spending in June also came in line with 0.30% consensus but below an upwardly revised prior of 0.50%. S&P CoreLogic CS 20-city home price index in May decelerated for a 14th straight month, underscoring moderation in the housing market. The YoY change slipped to 2.39% from a downwardly revised prior of 2.53% vs. 2.40% consensus. On the contrary, Pending Home Sales in June climbed to 2.80% above consensus of 0.50%, following 1.10% in prior. Lastly, Conference Board Consumer Confidence index in July also rose to 135.70 from an upwardly revised prior of 124.30.
The curve has steepened with UST 10-Year yield down 0.01 bp.