US stock index futures rebounded from its recent losses after China’s central bank moved to stabilize its currency, easing tensions about the nation using it in the trade war. The dollar steadied and Treasuries gave back its gain from yesterday’s surge. Yesterday, benchmark 10-YearTreasury yield sank to the lowest level since the surge that followed President Trump’s 2016 election and reached the most extreme curve inversion against 3-month bill since the lead-up to the financial crisis in 2008. Also yesterday, the Treasury Department designated China a currency manipulator after they allowed the yuan to tumble. However, China said that the recent depreciation of its currency was decided by the market, and denied the Trump administration’s accusation. With China confirming that it has suspended the purchases of US agricultural products, the outlook for trade and economic growth in general has become dimmer. Elsewhere, WTI crude edged higher, trading above $55 a barrel this morning.
We only have one economic data released today; JOLTS Job Openings in June came in at 7348 above expectation of 7326 following an upwardly revised prior of 7384. Later today, St. Louis Fed President Bullard will speak on the US economy to the national Press Club in Washington, and the US Treasury is scheduled to auction off $38 billion of 3-year notes at 10:00 AM (PT).
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US stock index futures rebounded from its recent losses after China’s central bank moved to stabilize its currency, easing tensions about the nation using it in the trade war. The dollar steadied and Treasuries gave back its gain from yesterday’s surge. Yesterday, benchmark 10-Year Treasury yield sank to the lowest level since the surge that followed President Trump’s 2016 election and reached the most extreme curve inversion against 3-month bill since the lead-up to the financial crisis in 2008. Also yesterday, the Treasury Department designated China a currency manipulator after they allowed the yuan to tumble. However, China said that the recent depreciation of its currency was decided by the market, and denied the Trump administration’s accusation. With China confirming that it has suspended the purchases of US agricultural products, the outlook for trade and economic growth in general has become dimmer. Elsewhere, WTI crude edged higher, trading above $55 a barrel this morning.
We only have one economic data released today; JOLTS Job Openings in June came in at 7348 above expectation of 7326 following an upwardly revised prior of 7384. Later today, St. Louis Fed President Bullard will speak on the US economy to the national Press Club in Washington, and the US Treasury is scheduled to auction off $38 billion of 3-year notes at 10:00 AM (PT).
The curve has bear-steepened with UST 10-Year yield up 5.23 bps.