Treasuries are slightly lower across the curve this morning from yesterday's close.? The UST10-Year yield is currently at 2.236% after closing at 2.223% prior.
Yesterday the marketrallied upon the release of a rather dovish FOMC Minutes from the Fed's latest meeting in July. There seemed to have been a lack of commitment from the Feds about the timing of both the balance sheet normalization and future rate hikes due to the lack of confidence current labor conditions and recent inflation data. The timing of the Fed's implementation on the balance sheet normalization is still unclear, but stated that it would occur “relatively soon”, signaling to a possible announcement in their meeting next month.
This morning we received the Initial Jobless Claims for the week ending on August 12th which fell 12k to 232k from 244k the week prior. Continuing Claims for the week ending on August 5 fell 3k to 1953k from an upwardly revised 1956k the week prior. The August Philadelphia Fed Business Outlook Index came in above expectations at 18.90 versus 18.00 per consensus. We also received the Industrial Production data for July, which rose 0.20% following a 0.40% rise in June, while the Capacity Utilization data came in line with expectations at 76.70% which was unchanged from an upwardly revised 76.70% the month prior. Later today at 10:00 AM (PT), Dallas Fed President Kaplan will speak in Lubbock Chamber of Commerce which will include a Q&A with both the audience and the media.
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Yesterday the market rallied upon the release of a rather dovish FOMC Minutes from the Fed's latest meeting in July. There seemed to have been a lack of commitment from the Feds about the timing of both the balance sheet normalization and future rate hikes due to the lack of confidence current labor conditions and recent inflation data. The timing of the Fed's implementation on the balance sheet normalization is still unclear, but stated that it would occur “relatively soon”, signaling to a possible announcement in their meeting next month.
This morning we received the Initial Jobless Claims for the week ending on August 12th which fell 12k to 232k from 244k the week prior. Continuing Claims for the week ending on August 5 fell 3k to 1953k from an upwardly revised 1956k the week prior. The August Philadelphia Fed Business Outlook Index came in above expectations at 18.90 versus 18.00 per consensus. We also received the Industrial Production data for July, which rose 0.20% following a 0.40% rise in June, while the Capacity Utilization data came in line with expectations at 76.70% which was unchanged from an upwardly revised 76.70% the month prior. Later today at 10:00 AM (PT), Dallas Fed President Kaplan will speak in Lubbock Chamber of Commerce which will include a Q&A with both the audience and the media.
The curve has bear-steepened with the UST 10-Year up 1.3 bps from prior closing.