Treasuries are higher across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.955% after closing at 2.974% prior.
Treasuriesrallied overnight and into the open after the Bank of Japan pledged to maintain its ultra-loose monetary policy unchanged and signaled to keep interest rates low for an “extended period of time”. Treasuries have pared some of its gains since as markets responded to headlines that the U.S. and China are attempting to resume trade talks to alleviate trade tensions. Conversely, U.S. Stocks have gained on the U.S. and China trade news. The two-day FOMC meeting is set to begin later today, with the Fed's announcement of its latest monetary policy decision available tomorrow.
On the economic calendar, we received the June Personal Income data which came in line with expectations at 0.40% gain following an unrevised 0.40% increase prior. Personal Spending also came in as expected at 0.40% gain month-over-month following an upwardly revised 0.50% rise in May. Moreover, the PCE Deflator showed a 0.10% increase in June following a 0.20% rise in May, with its YoY unchanged from a downwardly revised 2.20% prior. PCE Core rose 0.10% month-over-month as expected, while its YoY remained unchanged from a downwardly revised 1.90% prior. We also received the May Case-Shiller 20-City Home Composite Price Index which rose 0.20% month-over-month following a downwardly revised 0.16% increase prior.
This information is provided solely for informational use and is not intended as trading or investment advice in any manner whatsoever. Sun West Mortgage Company, Inc. is not a licensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice
Treasuries rallied overnight and into the open after the Bank of Japan pledged to maintain its ultra-loose monetary policy unchanged and signaled to keep interest rates low for an “extended period of time”. Treasuries have pared some of its gains since as markets responded to headlines that the U.S. and China are attempting to resume trade talks to alleviate trade tensions. Conversely, U.S. Stocks have gained on the U.S. and China trade news. The two-day FOMC meeting is set to begin later today, with the Fed's announcement of its latest monetary policy decision available tomorrow.
On the economic calendar, we received the June Personal Income data which came in line with expectations at 0.40% gain following an unrevised 0.40% increase prior. Personal Spending also came in as expected at 0.40% gain month-over-month following an upwardly revised 0.50% rise in May. Moreover, the PCE Deflator showed a 0.10% increase in June following a 0.20% rise in May, with its YoY unchanged from a downwardly revised 2.20% prior. PCE Core rose 0.10% month-over-month as expected, while its YoY remained unchanged from a downwardly revised 1.90% prior. We also received the May Case-Shiller 20-City Home Composite Price Index which rose 0.20% month-over-month following a downwardly revised 0.16% increase prior.
The curve has bull-flattened with the UST 10-Year yield doen 1.9 bps from prior closing.