Market opened today’s session with treasuries fluctuating across all maturities. 10-YearTreasury yield is at 1.5808, 0.85 bp decreased from prior closing of 1.5893.
US stocks pared earlier gains on mixed economic data ahead of the start of a central banking summit in Jackson Hole, Wyoming. Treasuries fell after Kansas City Fed President Esther George said that the Fed should not have cut the rates last month but rebounded on economic data. Minutes from the July FOMC meeting showed yesterday that the Fed officials saw the rate cut as an insurance policy against headwinds from too-weak inflation and the risk of a deeper slump in business investment. The widely watched 2-Year and 10-YearUS treasury yield curve briefly inverted yesterday after the minutes were released. ECB also released their minutes which showed concerns regarding their ability to revive inflation, and most European bonds fell as a key gauge of German manufacturing sector showed orders are dropping at the fastest pace in six years. Elsewhere, WTI crude edged higher from the previous session, trading slightly below $56 a barrel this morning.
Initial Jobless Claims and Continuing Claims displayed strength in labor market, printing 209k and 1674k following upwardly revised prior of 221k and 1728, respectively. Bloomberg Consumer Comfort edged higher to 61.50 from 61.20 prior. Markit Us Manufacturing PMI, however, lowered to 49.90 form 50.40 prior vs. 50.50 consensus and Services PMI also declined to 50.90 from 53.00 prior vs. 52.80 consensus, dampening the sentiment set by the claims data. Lastly, Leading Index in July rose to 0.50% from an upwardly revised prior of -0.10%. Later today, the US Treasury is scheduled to auction off $55 billion of 4-week bills and $40 billion of 8-week bills at 8:30 AM (PT), and $7 billion of 30-year TIPS reopening at 10:00 AM (PT). Fed Chair Powell is scheduled to speak on the challenges for monetary policy tomorrow at 7:00 AM (PT) with analysts expecting him to suggest that the Fed is ready to reduce rates further.
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US stocks pared earlier gains on mixed economic data ahead of the start of a central banking summit in Jackson Hole, Wyoming. Treasuries fell after Kansas City Fed President Esther George said that the Fed should not have cut the rates last month but rebounded on economic data. Minutes from the July FOMC meeting showed yesterday that the Fed officials saw the rate cut as an insurance policy against headwinds from too-weak inflation and the risk of a deeper slump in business investment. The widely watched 2-Year and 10-Year US treasury yield curve briefly inverted yesterday after the minutes were released. ECB also released their minutes which showed concerns regarding their ability to revive inflation, and most European bonds fell as a key gauge of German manufacturing sector showed orders are dropping at the fastest pace in six years. Elsewhere, WTI crude edged higher from the previous session, trading slightly below $56 a barrel this morning.
Initial Jobless Claims and Continuing Claims displayed strength in labor market, printing 209k and 1674k following upwardly revised prior of 221k and 1728, respectively. Bloomberg Consumer Comfort edged higher to 61.50 from 61.20 prior. Markit Us Manufacturing PMI, however, lowered to 49.90 form 50.40 prior vs. 50.50 consensus and Services PMI also declined to 50.90 from 53.00 prior vs. 52.80 consensus, dampening the sentiment set by the claims data. Lastly, Leading Index in July rose to 0.50% from an upwardly revised prior of -0.10%. Later today, the US Treasury is scheduled to auction off $55 billion of 4-week bills and $40 billion of 8-week bills at 8:30 AM (PT), and $7 billion of 30-year TIPS reopening at 10:00 AM (PT). Fed Chair Powell is scheduled to speak on the challenges for monetary policy tomorrow at 7:00 AM (PT) with analysts expecting him to suggest that the Fed is ready to reduce rates further.
The curve has bull-flattened with UST 10-Year yield down 0.85 bp.