Treasuries are lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 3.170% after closing at 3.157% prior.
Treasuries fell overnight as U.S. stocks rebounded on some positive third-quarter corporate earnings results from Morgan Stanley and Goldman Sachs Group Inc. Healthcare firms also provided stocks a boost as Johnson & Johnson and UnitedHealth Group Inc. earnings results bolstered the Dow Jones. Earnings season continues later today after the close and will include results from Netflix Inc. which will be the first large technology company to report. Elsewhere, geopolitical tensions appeared to have eased with the Italian government agreeing on a budget to meet Monday’s midnight deadline, while Prime Minister Theresa May shed some positivity ahead of an important summit between British and EU officials on Wednesday.
On the economic calendar, we received the September Industrial Production report which increased 0.30% MoM following an unrevised 0.40% gain in August; consensus called for a 0.20% gain in September. Capacity Utilization rate was unchanged MoM at 78.10% in September which was marginally lower than expected as consensus called for the rate to show 78.20%. Moreover, the Manufacturing output gained 0.20% in September to meet expectations, while the August data was revised higher from 0.20% to 0.30%. We also received the NAHB Housing Market Index for October which came in higher than expected at 68 versus 66 per consensus following an unrevised 67 reading prior. Also received, the August JOLTS Job Openings rose 7.136 million in August from an upwardly revised 7.077 million prior. Later today, the August Net TIC Flows and Net Long-term TIC Flows will be available at 1:00 PM (PT).
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Treasuries fell overnight as U.S. stocks rebounded on some positive third-quarter corporate earnings results from Morgan Stanley and Goldman Sachs Group Inc. Healthcare firms also provided stocks a boost as Johnson & Johnson and UnitedHealth Group Inc. earnings results bolstered the Dow Jones. Earnings season continues later today after the close and will include results from Netflix Inc. which will be the first large technology company to report. Elsewhere, geopolitical tensions appeared to have eased with the Italian government agreeing on a budget to meet Monday’s midnight deadline, while Prime Minister Theresa May shed some positivity ahead of an important summit between British and EU officials on Wednesday.
On the economic calendar, we received the September Industrial Production report which increased 0.30% MoM following an unrevised 0.40% gain in August; consensus called for a 0.20% gain in September. Capacity Utilization rate was unchanged MoM at 78.10% in September which was marginally lower than expected as consensus called for the rate to show 78.20%. Moreover, the Manufacturing output gained 0.20% in September to meet expectations, while the August data was revised higher from 0.20% to 0.30%. We also received the NAHB Housing Market Index for October which came in higher than expected at 68 versus 66 per consensus following an unrevised 67 reading prior. Also received, the August JOLTS Job Openings rose 7.136 million in August from an upwardly revised 7.077 million prior. Later today, the August Net TIC Flows and Net Long-term TIC Flows will be available at 1:00 PM (PT).
The curve has bear-flattened with the UST 10-Year yield up 1.3 bps from prior closing.