Treasuries are slightly higher across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.899% after closing at 2.903% prior.
Treasuriesheld steady overnight ahead of the August report on private nonfarm payroll growth, while U.S. stock futures were mixed as the turmoil in emerging markets looms. A busy economic calendar day kicked off with the ADP Employment Change for August which showed 163k new jobs were added following a downwardly revised 217k increase in July; consensus called for a 200k gain. We also received the final reading of the 2Q Nonfarm Productivity which remained unchanged from prior at a 2.90% gain, while the final print of the 2Q Unit Labor Costs fell 1.00% after showing a 0.90% drop prior. Moreover, Initial Jobless Claims for the week ended September 1 fell 10k to 203k and hit its lowest level since 1969.
Also released, the final reading of the August Markit US Services PMI came in below expectations at 54.80 versus 55.20 per consensus, while the Markit US Composite PMI dropped back to 54.70 from 55.00 prior. The July Factory Orders fell 0.80% month-over-month following a slight downwardly revised 0.60% gain in June. Factory Orders excluding transportation gained 0.20% following a 0.40% increase in June. Durable Goods Orders fell 1.70% in July which marked a consecutive month of a 1.70% drop. Durables excluding transportation showed a slight increase of 0.10% after rising 0.20% in June. Lastly, the Capital Goods Orders Nondefense excluding aircraft rose 1.60% in July, and Capital Goods Ship Nondefense excluding aircraft increased 1.00% MoM.
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Treasuries held steady overnight ahead of the August report on private nonfarm payroll growth, while U.S. stock futures were mixed as the turmoil in emerging markets looms. A busy economic calendar day kicked off with the ADP Employment Change for August which showed 163k new jobs were added following a downwardly revised 217k increase in July; consensus called for a 200k gain. We also received the final reading of the 2Q Nonfarm Productivity which remained unchanged from prior at a 2.90% gain, while the final print of the 2Q Unit Labor Costs fell 1.00% after showing a 0.90% drop prior. Moreover, Initial Jobless Claims for the week ended September 1 fell 10k to 203k and hit its lowest level since 1969.
Also released, the final reading of the August Markit US Services PMI came in below expectations at 54.80 versus 55.20 per consensus, while the Markit US Composite PMI dropped back to 54.70 from 55.00 prior. The July Factory Orders fell 0.80% month-over-month following a slight downwardly revised 0.60% gain in June. Factory Orders excluding transportation gained 0.20% following a 0.40% increase in June. Durable Goods Orders fell 1.70% in July which marked a consecutive month of a 1.70% drop. Durables excluding transportation showed a slight increase of 0.10% after rising 0.20% in June. Lastly, the Capital Goods Orders Nondefense excluding aircraft rose 1.60% in July, and Capital Goods Ship Nondefense excluding aircraft increased 1.00% MoM.
The curve has bull-steepened with the UST 10-Year yield down 0.4 bp from prior closing.