Treasuries are lower across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.845% after closing at 2.827% prior.
Treasurieslowered overnight while U.S. Stocks rallied after the trade negotiations between U.S. and China concluded without any major progress. Yesterday saw a fury of comments from Fed members, including St. Louis Fed President Bullard who does not support further rate increases, while Dallas Fed President Kaplan and Kansas City Fed President George both agree that two more rate hikes would be appropriate in 2018. The focus of markets will remain on central banks this morning with Fed Chairman Powell speaking on the economy and monetary policy at Jackson Hole. Investors await the tone of the Fed Chairman's comments given the recent criticism received from President Trump earlier this week.
On the economic calendar, we received the July Durable Goods Orders which dropped 1.70% following a revised 0.70% gain prior; consensus called for a 1.00% drop MoM. Durables excluding transportation rose 0.20% following a revised 0.10% increase prior, while consensus expected a 0.50% increase. The July Capital Goods Orders nondefense excluding aircraft and parts rose 1.40% versus an expected 0.50% increase per survey. Its prior mark was also revised higher from a 0.20% increase to 0.60%. Capital Goods Ship nondefense excluding aircraft also rose above expectations at 0.90% versus 0.30% per consensus. Its prior mark was upwardly revised to show a 0.90% increase from 0.70% as initially released.
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Treasuries lowered overnight while U.S. Stocks rallied after the trade negotiations between U.S. and China concluded without any major progress. Yesterday saw a fury of comments from Fed members, including St. Louis Fed President Bullard who does not support further rate increases, while Dallas Fed President Kaplan and Kansas City Fed President George both agree that two more rate hikes would be appropriate in 2018. The focus of markets will remain on central banks this morning with Fed Chairman Powell speaking on the economy and monetary policy at Jackson Hole. Investors await the tone of the Fed Chairman's comments given the recent criticism received from President Trump earlier this week.
On the economic calendar, we received the July Durable Goods Orders which dropped 1.70% following a revised 0.70% gain prior; consensus called for a 1.00% drop MoM. Durables excluding transportation rose 0.20% following a revised 0.10% increase prior, while consensus expected a 0.50% increase. The July Capital Goods Orders nondefense excluding aircraft and parts rose 1.40% versus an expected 0.50% increase per survey. Its prior mark was also revised higher from a 0.20% increase to 0.60%. Capital Goods Ship nondefense excluding aircraft also rose above expectations at 0.90% versus 0.30% per consensus. Its prior mark was upwardly revised to show a 0.90% increase from 0.70% as initially released.
The curve has bear-steepened with the UST 10-Year yield up 1.8 bps from prior closing.
Have A Lovely Weekend!