Treasuries opened sharply higher across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.112% after closing at 2.159% prior.
Treasuriesrallied overnight driven by the North Korean missile that flew over the northern part of Japan yesterday. The fired missile sparked a global risk-off movement in markets as stocks slumped across Europe and Asia, while bonds gained as investors fled to safe-haven assets. The geopolitical tension between U.S. and North Korea is expected to regain traction as President Trump stated that “all options are on the table” in dealing with North Korea's latest bizarre action.
In economic news, we received the S&P Corelogic Case-Shiller home prices for June, which rose 0.11% following an upwardly revised rise of 0.13% in May. YoY home prices are up to 5.65% following an upwardly revised 5.74% rise YoY in May. We also received the Conference Board Consumer Confidence for August which rose to a reading of 122.90 following a downwardly revised 120.00 reading prior. Later today at 10:00 AM (PT), Treasury will auction $28 Billion 7-Year Notes.
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 rallied overnight driven by the North Korean missile that flew over the northern part of Japan yesterday. The fired missile sparked a global risk-off movement in markets as stocks slumped across Europe and Asia, while bonds gained as investors fled to safe-haven assets. The geopolitical tension between U.S. and North Korea is expected to regain traction as President Trump stated that “all options are on the table” in dealing with North Korea's latest bizarre action.
In economic news, we received the S&P Corelogic Case-Shiller home prices for June, which rose 0.11% following an upwardly revised rise of 0.13% in May. YoY home prices are up to 5.65% following an upwardly revised 5.74% rise YoY in May. We also received the Conference Board Consumer Confidence for August which rose to a reading of 122.90 following a downwardly revised 120.00 reading prior. Later today at 10:00 AM (PT), Treasury will auction $28 Billion 7-Year Notes.
The curve has bull-flattened with the UST 10-Year down 4.7 bps from prior closing.