Treasuries are lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 3.215% after closing at 3.207% prior.
Treasuries lowered overnight as the downward trend resumed ahead of the latest producer price data. Producer prices rose 0.20% as expected in September following an unrevised 0.10% drop prior. PPI Final Demand YoY came in slightly below expectations at 2.60% while consensus called for a 2.70% showing; its prior mark remained unchanged at 2.80%. PPI excluding food and energy also rose as expected at a 0.20% rate following a 0.10% decline in August, bringing its YoY level up to 2.50% from 2.30% prior. Excluding food, energy and trade services, producer prices rose 0.40% MoM following a 0.10% increase in August while its YoY level remained unchanged at 2.90% from prior. Treasuries edged lower after the release of the overall solid PPI data but have erased most of the early losses since; U.S. stocks remain lower this morning after declining overnight.
We also received the final release of the August Wholesale Inventories print which rose 1.00% to exceed expectations as consensus called for a 0.80% gain. Wholesale Trade Sales rose 0.80% following an upwardly revised 0.20% gain prior. MBA Mortgage Applications index fell 1.70% for the week ended October 5 as mortgage applications declined for the first week since September 7. Purchase applications were down 1.10% after rising 0.10% the week prior, while refinancing activities fell 2.60% after dropping 0.10% the week prior. Still ahead later today, U.S. will sell $23 Billion 10-Year Notes reopening at 10:00 AM (PT). In Fedspeak, Chicago Fed President Evans will speak on the economy and monetary policy this morning, while Atlanta Fed President Bostic discusses the economic outlook later this afternoon.
This information is provided solely for informational use and is not intended as trading or investment advice in any manner whatsoever. Sun West Mortgage Company, Inc. is not a licensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice
Treasuries lowered overnight as the downward trend resumed ahead of the latest producer price data. Producer prices rose 0.20% as expected in September following an unrevised 0.10% drop prior. PPI Final Demand YoY came in slightly below expectations at 2.60% while consensus called for a 2.70% showing; its prior mark remained unchanged at 2.80%. PPI excluding food and energy also rose as expected at a 0.20% rate following a 0.10% decline in August, bringing its YoY level up to 2.50% from 2.30% prior. Excluding food, energy and trade services, producer prices rose 0.40% MoM following a 0.10% increase in August while its YoY level remained unchanged at 2.90% from prior. Treasuries edged lower after the release of the overall solid PPI data but have erased most of the early losses since; U.S. stocks remain lower this morning after declining overnight.
We also received the final release of the August Wholesale Inventories print which rose 1.00% to exceed expectations as consensus called for a 0.80% gain. Wholesale Trade Sales rose 0.80% following an upwardly revised 0.20% gain prior. MBA Mortgage Applications index fell 1.70% for the week ended October 5 as mortgage applications declined for the first week since September 7. Purchase applications were down 1.10% after rising 0.10% the week prior, while refinancing activities fell 2.60% after dropping 0.10% the week prior. Still ahead later today, U.S. will sell $23 Billion 10-Year Notes reopening at 10:00 AM (PT). In Fedspeak, Chicago Fed President Evans will speak on the economy and monetary policy this morning, while Atlanta Fed President Bostic discusses the economic outlook later this afternoon.
The curve has bear-steepened with the UST 10-Year yield up 0.8 bp from prior closing.