Treasuriesare lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.388% after closing at 2.355% during the prior session.
Republican efforts yesterday on both Houses of Congress fell short to fulfill an approximate $1.5 Trillion budget deficit over the next 10 years that both tax-reform proposals would produce. Writers of the bill in the House and the Senate are looking for ways to pay for the deep tax cuts, particularly at the corporate level, that the administration has promised. Differences that persist in both plans include the mortgage interest deduction, estate tax, personal income tax brackets, and offshore corporate earnings, among others. Both plans currently target a lower 20% corporate tax rate; and are set to move forward in the legislative calendar early next week.
The preliminary November University of Michigan Consumer Sentiment Index fell today to 97.80, below the market consensus of 100.80 and also lower than its previous 100.70 mark, amid expectations that inflation and interest rates could rise. The University’s preliminary November 1-Year Expected Inflation report registered a 2.60% change, slightly above its previous 2.40%; and its preliminary November 5-10 Year Expected Inflation report stayed in line with its previous mark at 2.50%.
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