Treasuries are slightly lower across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.912% after closing at 2.899% prior.
Treasuriesinched higher overnight sparked by the growing concerns for emerging markets currencies led by South Africa's rand. The dollar strengthened for a fifth straight session, while U.S. stock futures fell with commodities. Treasuries have moved lower since the start of today's session on news that the British and German governments may be easing the path for the U.K. to strike a Brexit deal with the European Union. On the economic calendar, reports showed that the July Trade Deficit widened the most since 2015. The Trade Balance jumped from a revised $45.70 Billion deficit in June to $50.10 Billion in July with new record deficits for China and the European Union. The bilateral deficit with China rose $3.35 Billion to $36.83 Billion in July as imports increased by 5.60% and exports fell 7.70%, while the bilateral deficit with the EU increased by $5.87 Billion as imports rose 2.50% and exports dropped 15.70%.
We also received the MBA Mortgage Applications for the week ended August 31 which fell 0.10% in activities following a 1.70% drop the week prior. Purchase applications showed a slight increase of 0.60% after dropping 0.90% the week prior, while refinancing activities fell 1.40% after dropping 3.00% the week prior. There are a couple Fed speakers on deck today including St. Louis Fed President Bullard and Minneapolis Fed President Kashkari. This week's Fed speakers will also feature New York Fed President Williams, Boston Fed President Rosengren, Cleveland Fed President Mester, and Dallas Fed President Kaplan.
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Treasuries inched higher overnight sparked by the growing concerns for emerging markets currencies led by South Africa's rand. The dollar strengthened for a fifth straight session, while U.S. stock futures fell with commodities. Treasuries have moved lower since the start of today's session on news that the British and German governments may be easing the path for the U.K. to strike a Brexit deal with the European Union. On the economic calendar, reports showed that the July Trade Deficit widened the most since 2015. The Trade Balance jumped from a revised $45.70 Billion deficit in June to $50.10 Billion in July with new record deficits for China and the European Union. The bilateral deficit with China rose $3.35 Billion to $36.83 Billion in July as imports increased by 5.60% and exports fell 7.70%, while the bilateral deficit with the EU increased by $5.87 Billion as imports rose 2.50% and exports dropped 15.70%.
We also received the MBA Mortgage Applications for the week ended August 31 which fell 0.10% in activities following a 1.70% drop the week prior. Purchase applications showed a slight increase of 0.60% after dropping 0.90% the week prior, while refinancing activities fell 1.40% after dropping 3.00% the week prior. There are a couple Fed speakers on deck today including St. Louis Fed President Bullard and Minneapolis Fed President Kashkari. This week's Fed speakers will also feature New York Fed President Williams, Boston Fed President Rosengren, Cleveland Fed President Mester, and Dallas Fed President Kaplan.
The curve has bear-steepened with the UST 10-Year yield up 1.3 bps from prior closing.