The UST10-Year yield is at 1.820% this morning after closing at 1.802% yesterday.
Rates are higher this morning after the Bank of England said it no longer expects to cut interest rates again this year. Yesterday, the FOMC came as expected with no change to short term rates but the statement did include a few important points. The FED repeated September’s assessment of near term risks in the economy being “roughly balanced” but did not specify that there would be a rate hike in December, only stating that the case for an increase has “continued to strengthen”. The FED also noted that inflation is expected to rise to 2.00% in the medium term.
This morning Nonfarm Productivity came in at 3.10% vs. 2.10% expected, the largest increase in the past 2 years. Initial Jobless Claims were 265K vs. 256K expected while Continuing Claims were lower at 2026K vs. 2043K expected. US Services PMI was in line with expectations at 54.80 and US Composite PMI was 54.90. Factory Orders were better at 0.30% vs. 0.20% expected but Durable Goods Orders were down at -0.30% vs. -0.10% expected. Friday brings us the October Nonfarm Payroll Report and Trade Balance.
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Rates are higher this morning after the Bank of England said it no longer expects to cut interest rates again this year. Yesterday, the FOMC came as expected with no change to short term rates but the statement did include a few important points. The FED repeated September’s assessment of near term risks in the economy being “roughly balanced” but did not specify that there would be a rate hike in December, only stating that the case for an increase has “continued to strengthen”. The FED also noted that inflation is expected to rise to 2.00% in the medium term.
This morning Nonfarm Productivity came in at 3.10% vs. 2.10% expected, the largest increase in the past 2 years. Initial Jobless Claims were 265K vs. 256K expected while Continuing Claims were lower at 2026K vs. 2043K expected. US Services PMI was in line with expectations at 54.80 and US Composite PMI was 54.90. Factory Orders were better at 0.30% vs. 0.20% expected but Durable Goods Orders were down at -0.30% vs. -0.10% expected. Friday brings us the October Nonfarm Payroll Report and Trade Balance.
The curve has bear-steepened with the UST 10-Year 1.8 bps higher from prior closing.