Treasuries are slightly lower across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.867% after closing at 2.863% prior.
Treasuries fell overnight as global-trade tensions eased on news that U.S. and China will resume trade discussions later this month. U.S. Stocks gained on the trade news while the dollar fell with treasuries. On the economic calendar, we received the Philadelphia Fed Business Outlook which disappointed expectations after scaling back down to 11.90 in August from 25.70 prior; consensus called for the index to show a slight drop to 22.00. Treasuries have pared most of its overnight losses since the opening of today's session.
We also received the July Housing Starts which rose 0.90% MoM to 1168k unit rate following a revised 12.90% decline prior. Building Permits rose 1.50% MoM to 1311k unit rate after a revised drop of 0.70% in June. Also on the calendar, we received the Initial Jobless Claims for the week ended August 11 which fell 2k to 212k from a revised 214k prior. Continuing Claims for the week ended August 4 fell 39k to 1721k from upwardly revised 1760k prior. Lastly, the August Bloomberg Economic Expectations came in at 57.00 following its prior mark of 53.50 in July.
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Treasuries fell overnight as global-trade tensions eased on news that U.S. and China will resume trade discussions later this month. U.S. Stocks gained on the trade news while the dollar fell with treasuries. On the economic calendar, we received the Philadelphia Fed Business Outlook which disappointed expectations after scaling back down to 11.90 in August from 25.70 prior; consensus called for the index to show a slight drop to 22.00. Treasuries have pared most of its overnight losses since the opening of today's session.
We also received the July Housing Starts which rose 0.90% MoM to 1168k unit rate following a revised 12.90% decline prior. Building Permits rose 1.50% MoM to 1311k unit rate after a revised drop of 0.70% in June. Also on the calendar, we received the Initial Jobless Claims for the week ended August 11 which fell 2k to 212k from a revised 214k prior. Continuing Claims for the week ended August 4 fell 39k to 1721k from upwardly revised 1760k prior. Lastly, the August Bloomberg Economic Expectations came in at 57.00 following its prior mark of 53.50 in July.
The curve has bear-flattened with the UST 10-Year yield up 0.4 bp from prior closing.