Treasuriesare selling off and are modestly lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.384% after closing at 2.319% prior.
A push forward for President Trump’s U.S. tax reform triggered a sell-off in treasuries overnight and into the open after the U.S. Senate announced a budget resolution late Thursday evening for a significant step in the tax reform process. Moreover, the market’s volatility has also been supported by President Trump’s anticipated choice as the next Fed Chair. Trump is reportedly leaning towards Fed Governor Jerome Powell, although Stanford economist John Taylor is still considered a top candidate as well.
In economic news, we received the September Existing Home Sales data which came in above expectations at 5.39m versus 5.30m per consensus. Existing Home SalesMoM rose 0.70% after falling 1.70% prior. Later today at 11:00 AM (PT), Cleveland Fed President Mester will take part in a panel discussion on global regulatory structure. Then at 4:30 PM (PT), Fed Chairwoman Yellen will speak on Monetary Policy at the annual National Economists Club’s Herbert Stein Memorial Lecture.
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A push forward for President Trump’s U.S. tax reform triggered a sell-off in treasuries overnight and into the open after the U.S. Senate announced a budget resolution late Thursday evening for a significant step in the tax reform process. Moreover, the market’s volatility has also been supported by President Trump’s anticipated choice as the next Fed Chair. Trump is reportedly leaning towards Fed Governor Jerome Powell, although Stanford economist John Taylor is still considered a top candidate as well.
In economic news, we received the September Existing Home Sales data which came in above expectations at 5.39m versus 5.30m per consensus. Existing Home Sales MoM rose 0.70% after falling 1.70% prior. Later today at 11:00 AM (PT), Cleveland Fed President Mester will take part in a panel discussion on global regulatory structure. Then at 4:30 PM (PT), Fed Chairwoman Yellen will speak on Monetary Policy at the annual National Economists Club’s Herbert Stein Memorial Lecture.
The curve has bear-steepened with the UST 10-Year up 6.5 bps from prior closing.
Have A Nice Weekend!