Treasuries are higher across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.843% after closing at 2.856% prior.
Treasuries rose overnight and into the open on trade tensions and geopolitical concerns. A whirl of headlines swarmed the global markets yesterday that included geopolitical turmoil in Argentina and revamped trade tensions between U.S. and China. Emerging-market assets fell while the dollar rallied mid-session as investors sold riskier assets after Argentina announced to hike its benchmark interest rate to 60 percent to protect its currency. Later in the session, U.S. equities and stocks fell after reports surfaced that President Trump will proceed with imposing tariffs on an additional $200 Billion Chinese goods as early as next week. Emerging markets lowered further overnight as contagion spread from Argentina and Turkey that saw the Indian rupee drop to a record, while the dollar extended gains with Treasuries early in today's session.
This morning we have a quiet end to the economic calendar week with just the August Chicago Purchasing Manager and the final August reading of the University of Michigan Sentiment available heading into the long weekend. The Chicago Purchasing Manager fell to 63.60 in August after reporting at 65.50 reading level the month prior; consensus called for the print to drop back to 63.00. The final reading of the August University of Michigan Sentiment rose to 96.20 from its previous estimate of 95.30, and beat expectations as consensus called for the final level to show 95.50. The Sentiment 1 year Inflation rose to 3.00% from 2.90% prior, while the 5-10 year Sentiment rose to 2.60% from 2.50% prior.
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 rose overnight and into the open on trade tensions and geopolitical concerns. A whirl of headlines swarmed the global markets yesterday that included geopolitical turmoil in Argentina and revamped trade tensions between U.S. and China. Emerging-market assets fell while the dollar rallied mid-session as investors sold riskier assets after Argentina announced to hike its benchmark interest rate to 60 percent to protect its currency. Later in the session, U.S. equities and stocks fell after reports surfaced that President Trump will proceed with imposing tariffs on an additional $200 Billion Chinese goods as early as next week. Emerging markets lowered further overnight as contagion spread from Argentina and Turkey that saw the Indian rupee drop to a record, while the dollar extended gains with Treasuries early in today's session.
This morning we have a quiet end to the economic calendar week with just the August Chicago Purchasing Manager and the final August reading of the University of Michigan Sentiment available heading into the long weekend. The Chicago Purchasing Manager fell to 63.60 in August after reporting at 65.50 reading level the month prior; consensus called for the print to drop back to 63.00. The final reading of the August University of Michigan Sentiment rose to 96.20 from its previous estimate of 95.30, and beat expectations as consensus called for the final level to show 95.50. The Sentiment 1 year Inflation rose to 3.00% from 2.90% prior, while the 5-10 year Sentiment rose to 2.60% from 2.50% prior.
The curve has bull-flattened with the UST 10-Year yield down 1.3 bps from prior closing.
Have A Nice Weekend!