Initial Jobless Claims rose to 283K vs. 264K prior (consensus 281K) with Continuing Claims falling to 2351K vs. 2389K prior (consensus 2380K). This is the lowest Continuing Claims level since 2000, and could be signs of an improving labor market conditions. The FHFA house price index edged up with a +0.1% rise in July, following a +0.3% advance the month prior. The FHFA Index for August defeated consensus for a +0.3% increase, coming in at +0.5% and the prior month’s number revised up to +0.2%. The Leading Index rose +0.2% in August following an upwardly revised gain of +1.1% in July. For September consensus for the Leading Index is for a +0.7% boost. Treasuries declined this morning, pushing 5-Year yields to the highest levels in a week in reaction to the substantial decline in Continuing Claims. The curve has bear steepened with 2s10s up +0.6 bps and MBS production coupons are following technicals (underperform in a selloff) as they have widened 1 tick to treasuryhedges.
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