Nonfarm Productivity rose +2.5% in the second quarter following a -3.2% drop prior (consensus +1.6%) and Unit Labor Costs edged up +0.6% vs. +5.7% prior (consensus +1.0%). Wholesale Inventories rose +0.5% in May, with a +0.7% gain, leaving the stocks-to-sales ratio unchanged at 1.18. For June Wholesale Inventories are expected to increase by another +0.7%. Yesterday Russia Imposed Sanctions against Imports from the US and EU engendering a flight to quality in treasuries and pushing 10-Year yields below resistance to 2.418%. This morning the demand for safe haven assets has further increased following President Barack Obama’s authorization of U.S. air strikes in Iraq. The authorization of the air strike coupled with the geopolitical tensions in Ukraine and Gaza have pushed 10-Year yields further past resistance to the lowest levels of the year at 2.398%. The FNMA 30-Year current coupon fell -2.7 bps to 2.893 vs. 2.920 prior and the curve has bull flattened with 2s10s down 1.1 bps.
GNMA Issuer Fannie Mae and Freddie Mac Direct Lender Licensed throughout the U.S. and Puerto Rico Privately Held Mortgage Bank for Over 32 Years Excellent Underwriting / Funding Turn Times
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