Treasuries are lower across the curve this morning from Friday's close. The UST10-Year yield is currently at 2.841% after closing at 2.811% prior.
Treasurieslowered overnight and early into today's session while U.S. Stocks rallied on reports that a Nafta deal between the U.S. and Mexico could be completed as early as Monday. Last week, Fed Chairman reiterated that the Feds will continue to follow a path of gradual policy tightening in his statement at Jackson Hole. Also last week, U.S. and China met to discuss trade disputes that resulted in little to no progress in the ongoing trade war. Later today at 10:00 AM (PT), U.S. will sell $36 Billion of 2-Year Notes in the first of three Treasuryauctions scheduled this week.
On the economic calendar, we received the July Chicago Fed National Activity Index which fell to 0.13 from an upwardly revised 0.48 prior. Consensus called for the index to read 0.45 but slower growth in production-related indicators moved the index lower than expected. Tomorrow we will receive the July Trade Balance, June S&P CoreLogic, and the July Wholesale and Retail Inventories reports. On Wednesday we will have the second estimates of 2Q GDP prints and the July Pending Home Sales. Then on Thursday, we will have the July Personal Income and Personal Spending. Finally on Friday, the August Chicago Purchasing Manager and the final reading of the August University of Michigan Sentiment will be available.
This information is provided solely for informational use and is not intended as trading or investment advice in any manner whatsoever. Sun West Mortgage Company, Inc. is not a licensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice
Treasuries lowered overnight and early into today's session while U.S. Stocks rallied on reports that a Nafta deal between the U.S. and Mexico could be completed as early as Monday. Last week, Fed Chairman reiterated that the Feds will continue to follow a path of gradual policy tightening in his statement at Jackson Hole. Also last week, U.S. and China met to discuss trade disputes that resulted in little to no progress in the ongoing trade war. Later today at 10:00 AM (PT), U.S. will sell $36 Billion of 2-Year Notes in the first of three Treasury auctions scheduled this week.
On the economic calendar, we received the July Chicago Fed National Activity Index which fell to 0.13 from an upwardly revised 0.48 prior. Consensus called for the index to read 0.45 but slower growth in production-related indicators moved the index lower than expected. Tomorrow we will receive the July Trade Balance, June S&P CoreLogic, and the July Wholesale and Retail Inventories reports. On Wednesday we will have the second estimates of 2Q GDP prints and the July Pending Home Sales. Then on Thursday, we will have the July Personal Income and Personal Spending. Finally on Friday, the August Chicago Purchasing Manager and the final reading of the August University of Michigan Sentiment will be available.
The curve has bear-steepened with the UST 10-Year yield up 3.0 bps from prior closing.