Treasuries are relatively unchanged across the curve this morning from yesterday's close.? The UST10-Year yield is currently at 2.280% after closing at 2.274% prior.
Yesterday treasuriessold off upon the release of better than expected July Retail Sales. This morning treasuries are holding steady as investors await the release of the FOMC Minutes from the Fed's July meeting which will be available at 11:00 AM (PT). The market is looking for more concrete balance sheet normalization discussion and expects the next rate hike to be delayed further due to the Fed's recent cautious comments surrounding inflation.
In economic news, we received the MBA Mortgage Applications for the week ending on August 11th which rose 0.10% in activity following a 3.00% increase the week prior. Purchase applications fell 1.50% after rising 0.80% the week prior, while refinancing activities increased 1.60% following a 5.30% jump the week prior. Housing Starts stumbled in July from a slowdown in apartment construction, falling 4.80% to 1155k from a downwardly revised 7.40% gain of 1213k in June. Building Permits fell 4.10% to 1223k in July following an upwardly revised 9.20% gain of 1275k in June.
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Yesterday treasuries sold off upon the release of better than expected July Retail Sales. This morning treasuries are holding steady as investors await the release of the FOMC Minutes from the Fed's July meeting which will be available at 11:00 AM (PT). The market is looking for more concrete balance sheet normalization discussion and expects the next rate hike to be delayed further due to the Fed's recent cautious comments surrounding inflation.
In economic news, we received the MBA Mortgage Applications for the week ending on August 11th which rose 0.10% in activity following a 3.00% increase the week prior. Purchase applications fell 1.50% after rising 0.80% the week prior, while refinancing activities increased 1.60% following a 5.30% jump the week prior. Housing Starts stumbled in July from a slowdown in apartment construction, falling 4.80% to 1155k from a downwardly revised 7.40% gain of 1213k in June. Building Permits fell 4.10% to 1223k in July following an upwardly revised 9.20% gain of 1275k in June.
The curve has bear-flattened with the UST 10-Year up 0.6 bp from prior closing.