Treasuries are slightly lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 3.166% after closing at 3.151% prior.
Treasuries lowered overnight as risk-off mode faded amid stabilization in U.S. stocks after back to back days of selling-off. Stocks turned higher after JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. kicked off the 3Q corporate earnings season with mostly positive results. Equities also rallied globally overnight as trade tensions between U.S. and China provided some temporary easement with the two countries agreeing to meet in November. Treasuries remain lower this morning, while the dollar has held steadily. Elsewhere, there are several Fed Officials scheduled to speak today including remarks from Chicago Fed President Evans, Atlanta Fed President Bostic, and Fed Vice Chairman Quarles.
On the economic calendar, we received the Import Price Index for September which rose 0.50% MoM following a revised decline of 0.40% prior; consensus was looking for a 0.20% rise. Import Price IndexYoY also came in higher than expected at 3.50% versus 3.10% per consensus, while its prior mark was revised up from 3.70% to 3.80%. Import Price excluding petroleum was unchanged at 0.00% following a 0.20% drop prior. Export Price Index was unchanged at 0.00% in September following a revised 0.20% decline in August; its YoY level is now at 2.70% following its revised 3.50% level prior. Lastly, we received the preliminary reading of the October University of Michigan Sentiment which came in below expectations at 99.00 versus 100.50 per consensus.
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Treasuries lowered overnight as risk-off mode faded amid stabilization in U.S. stocks after back to back days of selling-off. Stocks turned higher after JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. kicked off the 3Q corporate earnings season with mostly positive results. Equities also rallied globally overnight as trade tensions between U.S. and China provided some temporary easement with the two countries agreeing to meet in November. Treasuries remain lower this morning, while the dollar has held steadily. Elsewhere, there are several Fed Officials scheduled to speak today including remarks from Chicago Fed President Evans, Atlanta Fed President Bostic, and Fed Vice Chairman Quarles.
On the economic calendar, we received the Import Price Index for September which rose 0.50% MoM following a revised decline of 0.40% prior; consensus was looking for a 0.20% rise. Import Price Index YoY also came in higher than expected at 3.50% versus 3.10% per consensus, while its prior mark was revised up from 3.70% to 3.80%. Import Price excluding petroleum was unchanged at 0.00% following a 0.20% drop prior. Export Price Index was unchanged at 0.00% in September following a revised 0.20% decline in August; its YoY level is now at 2.70% following its revised 3.50% level prior. Lastly, we received the preliminary reading of the October University of Michigan Sentiment which came in below expectations at 99.00 versus 100.50 per consensus.
The curve has bear-steepened with the UST 10-Year yield up 1.5 bps from prior closing.
Have A Wonderful Weekend!