Treasuries are slightly higher across the curve this morning from yesterday's close. The UST10-Year yield is currently at 3.044% after closing at 3.053% prior.
Treasuriesrose overnight while U.S. stocks declined on geopolitical headlines after Italy's populist government unveiled a larger than expected budget deficit than investors anticipated. Italian populists have gained the upper hand on spending to fulfill costly campaign promises but are potentially headed towards a collision course with the European Union. Elsewhere, investors are also keeping an eye on the developments of the political drama in Washington surrounding Brett Kavanaugh's Supreme Court nomination. There are also two scheduled Fed speakers today including Richmond Fed President Barkin and New York Fed President Williams.
On the economic calendar, we received the August Personal Income which rose lower than expected at 0.30% versus 0.40% per consensus. Personal Spending came in as expected and gained 0.30% MoM following a 0.40% increase prior; Real Personal Spending rose 0.20% following a revised 0.30% increase prior. We also received the August PCE Deflator which rose 0.10% MoM as expected to bring its YoY level to 2.20% from 2.30% prior. PCE Core was unchanged at 0.00% MoM following an increase of 0.20% prior, while its YoY level remained at 2.00%. Lastly, we received the September University of Michigan Sentiment which dropped to 100.10 from 100.80 prior.
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Treasuries rose overnight while U.S. stocks declined on geopolitical headlines after Italy's populist government unveiled a larger than expected budget deficit than investors anticipated. Italian populists have gained the upper hand on spending to fulfill costly campaign promises but are potentially headed towards a collision course with the European Union. Elsewhere, investors are also keeping an eye on the developments of the political drama in Washington surrounding Brett Kavanaugh's Supreme Court nomination. There are also two scheduled Fed speakers today including Richmond Fed President Barkin and New York Fed President Williams.
On the economic calendar, we received the August Personal Income which rose lower than expected at 0.30% versus 0.40% per consensus. Personal Spending came in as expected and gained 0.30% MoM following a 0.40% increase prior; Real Personal Spending rose 0.20% following a revised 0.30% increase prior. We also received the August PCE Deflator which rose 0.10% MoM as expected to bring its YoY level to 2.20% from 2.30% prior. PCE Core was unchanged at 0.00% MoM following an increase of 0.20% prior, while its YoY level remained at 2.00%. Lastly, we received the September University of Michigan Sentiment which dropped to 100.10 from 100.80 prior.
The curve has bull-steepened with the UST 10-Year yield down 0.9 bp from prior closing.
Have A Lovely Weekend!