Treasuriesare modestly lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.348% after closing at 2.301% prior.
Treasury yields inched higher overnight as the probability of another rate hike from U.S. policy makers increased to roughly 80 percent from 72 percent last Friday. This morning we received the MBA Mortgage Applications for the week ending on October 13th which rose for the first time in over a month, up 3.60% in activities after falling 2.10% in the week prior. Purchase applications rose 4.20% after dropping 0.10% the week prior, while refinancing activities increased 3.00% after falling 4.20% the week prior.
We also received the Housing Starts for the month of September which fell 56k to 1127k from an upwardly revised 1183k in August. Housing Starts fell 4.70% MoM following a revised 0.20% drop the month prior. Building Permits for September fell 57k to 1215k from a downwardly revised 1272k in August. Building Permits dropped 4.50% MoM following a revised 3.40% gain the month prior. Later today at 11:00 AM (PT), the latest U.S. Federal ReserveBeige Book will be released in anticipation of its November 1st FOMC Meeting.
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Treasury yields inched higher overnight as the probability of another rate hike from U.S. policy makers increased to roughly 80 percent from 72 percent last Friday. This morning we received the MBA Mortgage Applications for the week ending on October 13th which rose for the first time in over a month, up 3.60% in activities after falling 2.10% in the week prior. Purchase applications rose 4.20% after dropping 0.10% the week prior, while refinancing activities increased 3.00% after falling 4.20% the week prior.
We also received the Housing Starts for the month of September which fell 56k to 1127k from an upwardly revised 1183k in August. Housing Starts fell 4.70% MoM following a revised 0.20% drop the month prior. Building Permits for September fell 57k to 1215k from a downwardly revised 1272k in August. Building Permits dropped 4.50% MoM following a revised 3.40% gain the month prior. Later today at 11:00 AM (PT), the latest U.S. Federal Reserve Beige Book will be released in anticipation of its November 1st FOMC Meeting.
The curve has bear-steepened with the UST 10-Year up 4.7 bps from prior closing.