Treasuries are modestly higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 3.073% after closing at 3.118% prior.
Treasuriesrose overnight and opened stronger as the sell-off in global equities resumed following the downbeat earnings results posted by Amazon and Alphabet after yesterday’s close. U.S. stocks fell sharply after rallying throughout yesterday’s session as the disappointing earnings added to this week’s market volatility. The risk-off mood pushed the dollar higher with treasuries, while oil prices fell again after gaining in back to back sessions. Global markets remain on edge as investors grapple with corporate earnings season, looming trade tensions, and the Fed’s hawkishness to continue tightening its monetary policy.
On the economic calendar, we received a solid first estimate of Q3 GDP which reported the U.S. economy expanded at a 3.50% pace to beat expectations as market consensus called for a 3.30% gain; its prior mark remained unchanged at a 4.20% increase. Personal Consumption also came in better than expected and rose 4.00% versus an expected 3.30% increase following an unchanged 3.80% gain prior. GDP Price Index rose 1.70% after rising 3.00% in the prior quarter, while the Core PCE rose 1.60% after rising 2.10% prior. GDPYoY level is now up 3.00% compared to 2.90% in Q2 and 2.30% in Q3 the year prior, reflecting that the economy has gained momentum over the last year. Lastly, we received the final reading of the October University of Michigan Sentiment which came in slightly lower than expected at 98.60 as the sentiment ticked down from 99.00 prior.
This information is provided solely for informational use and is not intended as trading or investment advice in any manner whatsoever. Sun West Mortgage Company, Inc. is not a licensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice
Treasuries rose overnight and opened stronger as the sell-off in global equities resumed following the downbeat earnings results posted by Amazon and Alphabet after yesterday’s close. U.S. stocks fell sharply after rallying throughout yesterday’s session as the disappointing earnings added to this week’s market volatility. The risk-off mood pushed the dollar higher with treasuries, while oil prices fell again after gaining in back to back sessions. Global markets remain on edge as investors grapple with corporate earnings season, looming trade tensions, and the Fed’s hawkishness to continue tightening its monetary policy.
On the economic calendar, we received a solid first estimate of Q3 GDP which reported the U.S. economy expanded at a 3.50% pace to beat expectations as market consensus called for a 3.30% gain; its prior mark remained unchanged at a 4.20% increase. Personal Consumption also came in better than expected and rose 4.00% versus an expected 3.30% increase following an unchanged 3.80% gain prior. GDP Price Index rose 1.70% after rising 3.00% in the prior quarter, while the Core PCE rose 1.60% after rising 2.10% prior. GDP YoY level is now up 3.00% compared to 2.90% in Q2 and 2.30% in Q3 the year prior, reflecting that the economy has gained momentum over the last year. Lastly, we received the final reading of the October University of Michigan Sentiment which came in slightly lower than expected at 98.60 as the sentiment ticked down from 99.00 prior.
The curve has bull-steepened with the UST 10-Year yield down 4.5 bps from prior closing.
Have A Wonderful Weekend!