Treasuries are modestly lower across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.943% after closing at 2.874% prior.
Treasuriesheld steady overnight and into the open ahead of the August employment reports before selling off as the jobs data revealed another strong outing and an unexpected gain on wage earnings. The Average Hourly Earnings rose 0.40% MoM while consensus called for a 0.20% increase following a 0.30% gain in July. Moreover, the Average Hourly EarningsYoY also bested expectations which came rose 2.90% versus a surveyed 2.70% increase. Nonfarm Payrolls also came in stronger than expected and grew 201k in August following a downwardly revised 147k increase in July; consensus called for a gain of 190k. Private Payrolls grew 204k in August following a revised 153k increase in July, while Manufacturing Payrolls fell 3k following a revised 18k gain prior. The Unemployment Rate remained unchanged MoM at 3.90%.
With another strong job growth reported in August, the Feds are given further support to maintain their stance on gradual rate increases. There are several Fed members scheduled to speak today including Boston Fed President Rosengren, Cleveland Fed President Mester, and Dallas Fed President Kaplan. Elsewhere, investors remain on edge for the latest developments on the ongoing trade dispute between U.S. and China. It was reported earlier this week that President Trump may proceed with more tariffs imposition on an additional $200 Billion Chinese imports this week, but the formal announcement from the White House has yet to be released.
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Treasuries held steady overnight and into the open ahead of the August employment reports before selling off as the jobs data revealed another strong outing and an unexpected gain on wage earnings. The Average Hourly Earnings rose 0.40% MoM while consensus called for a 0.20% increase following a 0.30% gain in July. Moreover, the Average Hourly Earnings YoY also bested expectations which came rose 2.90% versus a surveyed 2.70% increase. Nonfarm Payrolls also came in stronger than expected and grew 201k in August following a downwardly revised 147k increase in July; consensus called for a gain of 190k. Private Payrolls grew 204k in August following a revised 153k increase in July, while Manufacturing Payrolls fell 3k following a revised 18k gain prior. The Unemployment Rate remained unchanged MoM at 3.90%.
With another strong job growth reported in August, the Feds are given further support to maintain their stance on gradual rate increases. There are several Fed members scheduled to speak today including Boston Fed President Rosengren, Cleveland Fed President Mester, and Dallas Fed President Kaplan. Elsewhere, investors remain on edge for the latest developments on the ongoing trade dispute between U.S. and China. It was reported earlier this week that President Trump may proceed with more tariffs imposition on an additional $200 Billion Chinese imports this week, but the formal announcement from the White House has yet to be released.
The curve has bear-steepened with the UST 10-Year yield up 6.9 bps from prior closing.
Have A Wonderful Weekend!