Treasuries are slightly higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 3.207% after closing at 3.238% prior.
Treasuries gained some momentum overnight to open today’s session higher as risk-off mode set the tone after U.S. equities fell with oil. Crude oil slid into a bear market as it heads for the longest losing streak on record. Growing concerns over the health of China’s economy also weighed on global stocks. Yesterday the Federal Reserve announced to keep the interest rates unchanged as expected, but reiterated its intent to stay on course with its gradual rate hike path, signaling that the next hike will be in December. The Fed acknowledged the strong economic outlook supported by strong job gains and a drop in the unemployment rate. The dollar strengthened after the Fed indicated that borrowing costs will continue to rise; the greenback extended gains this morning after reports showed that producer prices rose more than expected in October.
The October PPI Final Demand increased 0.60% MoM following a 0.20% gain prior and exceeded the consensus called for a 0.20% rise; PPI Final Demand YoY rose to 2.90% from 2.60% prior. Excluding food and energy, producer prices rose 0.50% MoM versus an expected 0.20% increase, bringing its YoY index to 2.60% from 2.50% prior. We also received the September Wholesale Inventories which rose 0.40% MoM following a 0.30% gain prior, while Wholesale Trade Sales rose just 0.20% MoM following a revised 0.70% gain prior. Also on the calendar, the preliminary reading of the November University of Michigan Sentiment ticked down to 98.30 from 98.60 prior. Lastly, Fed speeches resume today with New York Fed President Williams, Philadelphia Fed President Harker and Fed Vice Chairman Quarles.
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 gained some momentum overnight to open today’s session higher as risk-off mode set the tone after U.S. equities fell with oil. Crude oil slid into a bear market as it heads for the longest losing streak on record. Growing concerns over the health of China’s economy also weighed on global stocks. Yesterday the Federal Reserve announced to keep the interest rates unchanged as expected, but reiterated its intent to stay on course with its gradual rate hike path, signaling that the next hike will be in December. The Fed acknowledged the strong economic outlook supported by strong job gains and a drop in the unemployment rate. The dollar strengthened after the Fed indicated that borrowing costs will continue to rise; the greenback extended gains this morning after reports showed that producer prices rose more than expected in October.
The October PPI Final Demand increased 0.60% MoM following a 0.20% gain prior and exceeded the consensus called for a 0.20% rise; PPI Final Demand YoY rose to 2.90% from 2.60% prior. Excluding food and energy, producer prices rose 0.50% MoM versus an expected 0.20% increase, bringing its YoY index to 2.60% from 2.50% prior. We also received the September Wholesale Inventories which rose 0.40% MoM following a 0.30% gain prior, while Wholesale Trade Sales rose just 0.20% MoM following a revised 0.70% gain prior. Also on the calendar, the preliminary reading of the November University of Michigan Sentiment ticked down to 98.30 from 98.60 prior. Lastly, Fed speeches resume today with New York Fed President Williams, Philadelphia Fed President Harker and Fed Vice Chairman Quarles.
The curve has bull-flattened with the UST 10-Year yield down 3.1 bps from prior closing.
Have A Wonderful Weekend!