Treasuriesare modestly lower across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.403% after closing at 2.367% prior.
Treasury yields climbed higher after solid corporate earnings data were released from U.S. blue chips. Caterpillar Inc. and 3M delivered results that topped estimates per consensus while General Motors and Fiat Chrysler also rallied on earnings. With another quiet economic calendar day, the market will continue its focus on digesting the corporate earnings data, prospects for the U.S. tax reform, and President Trump's choice as the next Fed Reserve leader.
This morning we received the Markit US Manufacturing PMI for October which came in above expectations at 54.50 versus 53.40 per consensus. The Markit US Services PMI also bested expectations coming in at 55.90 versus 55.20 per consensus, and Markit US Composite PMI rose to 55.70 in October from 54.80 prior. We also received the Richmond Fed Manufacturing Index, which fell to a reading of 12.00 from an unrevised index reading of 19.00 prior. Later today at 10:00 AM (PT), U.S. will sell $26 Billion of 2-Year Notes.
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Treasury yields climbed higher after solid corporate earnings data were released from U.S. blue chips. Caterpillar Inc. and 3M delivered results that topped estimates per consensus while General Motors and Fiat Chrysler also rallied on earnings. With another quiet economic calendar day, the market will continue its focus on digesting the corporate earnings data, prospects for the U.S. tax reform, and President Trump's choice as the next Fed Reserve leader.
This morning we received the Markit US Manufacturing PMI for October which came in above expectations at 54.50 versus 53.40 per consensus. The Markit US Services PMI also bested expectations coming in at 55.90 versus 55.20 per consensus, and Markit US Composite PMI rose to 55.70 in October from 54.80 prior. We also received the Richmond Fed Manufacturing Index, which fell to a reading of 12.00 from an unrevised index reading of 19.00 prior. Later today at 10:00 AM (PT), U.S. will sell $26 Billion of 2-Year Notes.
The curve has bear-steepened with the UST 10-Year up 3.6 bps from prior closing.