Treasuries are modestly lower across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.876% after closing at 2.847% prior.
Treasuries fell overnight as risk-on mode resumed while markets continued to digest the latest developments on global trade. Yesterday the U.S. and Mexico announced an accord on trade that pushed U.S. Stocks higher as investors moved toward riskier assets. It remains unclear where the new trade deal leaves Canada, although the U.S. continues to push for the Canadians to join the new deal soon and not risk being left out. Elsewhere, the U.S. will sell $37 billion of 5-Year Notes at 10:00 AM (PT) in the second of three Treasuryauctions scheduled this week.
On the economic calendar, we received the July Advance Goods Trade Balance which showed that the deficit widened to $72.20 Billion from a downwardly revised $67.90 Billion deficit prior. We also received the July Wholesale Inventories which rose 0.70% following a 0.10% increase prior; Retail Inventories rose 0.40% after being unchanged at 0.00% prior. The June S&P CoreLogic Case-Shiller Index rose 0.11% MoM following a revised 0.21% increase prior, bringing its YoY down to 6.31% from an upwardly revised 6.54% prior. Lastly, we received the August Conference Board Consumer Confidence which unexpectedly jumped to its highest level in 17 years at 133.40 following a revised 127.90 reading prior.
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Treasuries fell overnight as risk-on mode resumed while markets continued to digest the latest developments on global trade. Yesterday the U.S. and Mexico announced an accord on trade that pushed U.S. Stocks higher as investors moved toward riskier assets. It remains unclear where the new trade deal leaves Canada, although the U.S. continues to push for the Canadians to join the new deal soon and not risk being left out. Elsewhere, the U.S. will sell $37 billion of 5-Year Notes at 10:00 AM (PT) in the second of three Treasury auctions scheduled this week.
On the economic calendar, we received the July Advance Goods Trade Balance which showed that the deficit widened to $72.20 Billion from a downwardly revised $67.90 Billion deficit prior. We also received the July Wholesale Inventories which rose 0.70% following a 0.10% increase prior; Retail Inventories rose 0.40% after being unchanged at 0.00% prior. The June S&P CoreLogic Case-Shiller Index rose 0.11% MoM following a revised 0.21% increase prior, bringing its YoY down to 6.31% from an upwardly revised 6.54% prior. Lastly, we received the August Conference Board Consumer Confidence which unexpectedly jumped to its highest level in 17 years at 133.40 following a revised 127.90 reading prior.
The curve has bear-steepened with the UST 10-Year yield up 2.9 bps from prior closing.