Treasuries are lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 3.109% after closing at 3.086% prior.
Treasuriesslid overnight and opened lower to start the session after President Trump predicted that a “great deal” on trade with China is forthcoming. Trump’s comments were made after yesterday’s headlines that the White House is preparing to impose additional tariffs on more Chinese goods should the two nations fail to make any progress when they meet in November. Treasuries saw a rally late in yesterday’s session on the tariffs expansion news, but those gains were reversed as risk sentiment faded on Trump’s comments about a possible trade deal with China. Investors will remain attentive of U.S.-China trade talks in the upcoming weeks leading up to Presidents Trump and Xi’s scheduled meeting at the G-20 summit next month. Elsewhere, mixed corporate earnings results saw both gains and losses in U.S. stocks as investors remain on edge; earnings season continues including results from Facebook later at close.
On the economic calendar, we received the Case-ShillerHome Prices for the month of August which reported a 0.09% MoM increase following a downwardly revised 0.07% gain prior; the price data was slightly weaker than expected as consensus called for a 0.10% increase. Moreover, Case-ShillerYoY prices rose 5.49% in August after rising 5.90% YoY in July. Home price gains in August showed the slowest pace since 2016 as high borrowing costs and property values have limited buyer interest, pointing to signs that the housing market is cooling. Also received, the October Conference Board Consumer Confidence Index rose to an 18-year high 137.90 from a downwardly revised 135.30 level prior; consensus called for a 135.90 reading so the index accelerated more than expected.
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Treasuries slid overnight and opened lower to start the session after President Trump predicted that a “great deal” on trade with China is forthcoming. Trump’s comments were made after yesterday’s headlines that the White House is preparing to impose additional tariffs on more Chinese goods should the two nations fail to make any progress when they meet in November. Treasuries saw a rally late in yesterday’s session on the tariffs expansion news, but those gains were reversed as risk sentiment faded on Trump’s comments about a possible trade deal with China. Investors will remain attentive of U.S.-China trade talks in the upcoming weeks leading up to Presidents Trump and Xi’s scheduled meeting at the G-20 summit next month. Elsewhere, mixed corporate earnings results saw both gains and losses in U.S. stocks as investors remain on edge; earnings season continues including results from Facebook later at close.
On the economic calendar, we received the Case-Shiller Home Prices for the month of August which reported a 0.09% MoM increase following a downwardly revised 0.07% gain prior; the price data was slightly weaker than expected as consensus called for a 0.10% increase. Moreover, Case-Shiller YoY prices rose 5.49% in August after rising 5.90% YoY in July. Home price gains in August showed the slowest pace since 2016 as high borrowing costs and property values have limited buyer interest, pointing to signs that the housing market is cooling. Also received, the October Conference Board Consumer Confidence Index rose to an 18-year high 137.90 from a downwardly revised 135.30 level prior; consensus called for a 135.90 reading so the index accelerated more than expected.
The curve has bear-steepened with the UST 10-Year yield up 2.3 bps from prior closing.