The Dow Jones gained 0.10% at the open, the S&P 500 and Nasdaq Composite showed little change. The Federal Reserve is scheduled to meet today to discuss another possible rate cut. If approved, this will be the Central Bank’s third rate cut of 2019. Federal Reserve Chairman Jerome Powell will make the announcement today at 11:00 AM (PT). In a recent comment to the press, Treasury Secretary Steven Mnuchin stated the government is considering releasing 50-year bonds in an attempt to finance some of the country’s debt, which continues to grow at an alarming rate. Currently, the federal deficit increased to $984 billion for the fiscal year of 2019, the country’s highest level in seven years. Gold increased 0.20% to $1,490.15 an ounce. Meanwhile, West Texas Intermediate crude oil fell 0.40% to $55.31 a barrel. The yield on 10-YearTreasuries increased one basis point to 1.85%. The US Treasury will offer $55 billion and $40 billion at its weekly auction of four-week bills and eight-week bills, respectively.
The ADP Research Institute published a report that showed businesses’ payrolls increased by 125,000, which exceeded expectations. This report also detailed that goods-producing jobs were down by 13,000 as payrolls for mining, construction, and manufacturing decreased. Service-provider employment increased by 138,000 due to education and health services, trade, and transportation services. The ADP Research Institute also showed hiring at small businesses grew by about 17,000 and large businesses added 44,000 to payrolls. Yesterday, the Department of Commerce released data that reflected an increase of 1.90% in gross domestic product. However, the GDP is still at its lowest since the end of 2018. Consumer spending increased 2.90%, exceeding analysts’ expectations. The manufacturing sector continues to decline, hitting a 10 year low. Mortgage refinance applications declined 1.00% last week, but were still 134% higher than their levels a year ago. Applications to purchase a home increased 2.00% last week, and 10.00% year-to-date.
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The Dow Jones gained 0.10% at the open, the S&P 500 and Nasdaq Composite showed little change. The Federal Reserve is scheduled to meet today to discuss another possible rate cut. If approved, this will be the Central Bank’s third rate cut of 2019. Federal Reserve Chairman Jerome Powell will make the announcement today at 11:00 AM (PT). In a recent comment to the press, Treasury Secretary Steven Mnuchin stated the government is considering releasing 50-year bonds in an attempt to finance some of the country’s debt, which continues to grow at an alarming rate. Currently, the federal deficit increased to $984 billion for the fiscal year of 2019, the country’s highest level in seven years. Gold increased 0.20% to $1,490.15 an ounce. Meanwhile, West Texas Intermediate crude oil fell 0.40% to $55.31 a barrel. The yield on 10-Year Treasuries increased one basis point to 1.85%. The US Treasury will offer $55 billion and $40 billion at its weekly auction of four-week bills and eight-week bills, respectively.
The ADP Research Institute published a report that showed businesses’ payrolls increased by 125,000, which exceeded expectations. This report also detailed that goods-producing jobs were down by 13,000 as payrolls for mining, construction, and manufacturing decreased. Service-provider employment increased by 138,000 due to education and health services, trade, and transportation services. The ADP Research Institute also showed hiring at small businesses grew by about 17,000 and large businesses added 44,000 to payrolls. Yesterday, the Department of Commerce released data that reflected an increase of 1.90% in gross domestic product. However, the GDP is still at its lowest since the end of 2018. Consumer spending increased 2.90%, exceeding analysts’ expectations. The manufacturing sector continues to decline, hitting a 10 year low. Mortgage refinance applications declined 1.00% last week, but were still 134% higher than their levels a year ago. Applications to purchase a home increased 2.00% last week, and 10.00% year-to-date.
The curve has bull-flattened with the UST 10-Year yield down 2.82 bps from prior closing.