The UST10-Year yield is at 1.859% this morning after closing at 1.825% yesterday.
Bonds are in free fall this morning after strong manufacturing data out of China and higher commodity prices give investors confidence that the global economy is getting stronger and accommodation by central banks may end sooner than later. October was the worst month for Treasury yields in two years and November is looking to continue the trend. This morning economic data was mostly in line with US Manufacturing PMI at 53.40 vs. 53.20 expect, ISM Manufacturing at 51.90 vs. 51.70, Construction Spendingmonth over month at -0.40% vs. 0.50% and IBD/TIPP Economic Optimism at 51.40 vs. 49.00.
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Bonds are in free fall this morning after strong manufacturing data out of China and higher commodity prices give investors confidence that the global economy is getting stronger and accommodation by central banks may end sooner than later. October was the worst month for Treasury yields in two years and November is looking to continue the trend. This morning economic data was mostly in line with US Manufacturing PMI at 53.40 vs. 53.20 expect, ISM Manufacturing at 51.90 vs. 51.70, Construction Spending month over month at -0.40% vs. 0.50% and IBD/TIPP Economic Optimism at 51.40 vs. 49.00.
Tomorrow we have Mortgage Applications and ADP as well as the November FOMC. There is very little chance the Fed will raise rates ahead of the presidential election on November 8th. Thursday has Jobless Claims, Factory Orders and Durable Goods Orders. Friday brings us the October Nonfarm Payroll Report and Trade Balance.
The curve has bear-steepened with the UST 10-Year 3.4 bps higher from prior closing.