Treasuries are moderately lower across the curve this morning from Friday'sclose. The UST10-Year yield is currently at 2.222% after closing at 2.203% prior.
Treasury yields inched higher overnight ahead of the two-day FOMC meeting that will begin tomorrow and conclude on Wednesday. The market is expecting the Feds to discuss the beginning of the balance sheet reduction plan, and is also expecting the committee keep the current rates unchanged. Although the vast majority of the Committee still expects to see another rate hike later this year, the recent run of weak inflation data could play a role in potentially changing that outlook.
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Treasury yields inched higher overnight ahead of the two-day FOMC meeting that will begin tomorrow and conclude on Wednesday. The market is expecting the Feds to discuss the beginning of the balance sheet reduction plan, and is also expecting the committee keep the current rates unchanged. Although the vast majority of the Committee still expects to see another rate hike later this year, the recent run of weak inflation data could play a role in potentially changing that outlook.
This week's economic data kicks off quietly this morning with just the NAHB Housing Market Index for September, which fell to 64.00 from a downwardly revised 67.00 in August. Later today at 1:00 PM (PT) we will receive the Total Net TIC Flows and Net Long-term TIC Flows for July. The remainder of this week's calendar will be heavily focused on more housing data with Tuesday's Housing Starts and Building Permits for August, Wednesday's Existing Home Sales for August, and Thursday's FHFA House Price Index for July. On Friday we will receive the Markit US Manufacturing PMI, Markit US Services PMI, and the Markit US Composite PMI for September.
The curve has bear-steepened with the UST 10-Year up 1.9 bps from prior closing.