Treasuries opened higher across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.189% after closing at 2.214% prior.
Treasuriesrallied overnight after President Trump threatened to bring the U.S. government to the brink of a shutdown. His comments were made during his rally in Phoenix on Tuesday as a way of pressuring Congress into funding his plans to construct a wall along the U.S.-Mexico border. Trump has requested $1.60 Billion to begin the construction of the wall and has pressured Congress to pass some sort of spending bill by September 30th in order to avoid a government shutdown.
In economic reports, we received the MBA Mortgage Applications for the week ending on August 18th which dropped 0.5% in activities after increasing 0.10% the week prior. Purchase applications fell 1.50% following a 1.50% drop the week prior, and refinancing activities rose just 0.30% after rising 1.60% the week prior. The August Markit US Manufacturing PMI came in below expectations at 52.50 versus 53.50 per consensus, while the Markit US Services PMI came in above expectations at 56.90 versus 55.00 per consensus; Markit US Composite PMI rose to 56.00 from 54.60 prior. Lastly, we received the New Home Sales for July which fell to 571k from an upwardly revised 630k in June; consensus was looking for a 610k rise in July so the report came in below expectations.
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Treasuries rallied overnight after President Trump threatened to bring the U.S. government to the brink of a shutdown. His comments were made during his rally in Phoenix on Tuesday as a way of pressuring Congress into funding his plans to construct a wall along the U.S.-Mexico border. Trump has requested $1.60 Billion to begin the construction of the wall and has pressured Congress to pass some sort of spending bill by September 30th in order to avoid a government shutdown.
In economic reports, we received the MBA Mortgage Applications for the week ending on August 18th which dropped 0.5% in activities after increasing 0.10% the week prior. Purchase applications fell 1.50% following a 1.50% drop the week prior, and refinancing activities rose just 0.30% after rising 1.60% the week prior. The August Markit US Manufacturing PMI came in below expectations at 52.50 versus 53.50 per consensus, while the Markit US Services PMI came in above expectations at 56.90 versus 55.00 per consensus; Markit US Composite PMI rose to 56.00 from 54.60 prior. Lastly, we received the New Home Sales for July which fell to 571k from an upwardly revised 630k in June; consensus was looking for a 610k rise in July so the report came in below expectations.
The curve has bull-flattened with the UST 10-Year down 2.5 bps from prior closing.