Treasuries are slightly higher across the curve this morning from yesterday's close. The UST10-Year yield is currently at 3.045% after closing at 3.064% prior.
Treasuriesopened higher as global stocks extended Monday's declines amid tech shares sell-off led by Apple and Facebook. The data privacy controversy surrounding social media giant Facebook dragged down U.S. stocks, while every member of the FANG cohort declined at least 1.50 percent. Additionally, Apple slumped 2.70 percent on news that it would cut production orders for the three new iPhone models unveiled in September. U.S. equity futures struggled to reverse losses overnight and added to the risk-off mood of the markets as investors remained anxious over trade. Meanwhile, the dollar edged higher and havens advanced as both treasuries and gold strengthened; the 10-Year yield fell to its lowest level since September.
On the economic calendar, we received more housing reports that showed Housing Starts rebounded after the recent hurricanes in October. Housing Starts rose 1.50% MoM to a 1228k unit rate as expected following a revised 1210k unit rate in September. Building Permits fell 0.60% MoM to a 1263k unit rate from an upwardly revised 1270k unit rate prior; September's data was originally released at 1241k unit rate. Single-family starts fell 1.80% in October after declining 1.00% in September, while multi-family starts rose 10.30% following a 15.60% decline in September. The improvement in total starts was mainly driven by the gains in multi-family.
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Treasuries opened higher as global stocks extended Monday's declines amid tech shares sell-off led by Apple and Facebook. The data privacy controversy surrounding social media giant Facebook dragged down U.S. stocks, while every member of the FANG cohort declined at least 1.50 percent. Additionally, Apple slumped 2.70 percent on news that it would cut production orders for the three new iPhone models unveiled in September. U.S. equity futures struggled to reverse losses overnight and added to the risk-off mood of the markets as investors remained anxious over trade. Meanwhile, the dollar edged higher and havens advanced as both treasuries and gold strengthened; the 10-Year yield fell to its lowest level since September.
On the economic calendar, we received more housing reports that showed Housing Starts rebounded after the recent hurricanes in October. Housing Starts rose 1.50% MoM to a 1228k unit rate as expected following a revised 1210k unit rate in September. Building Permits fell 0.60% MoM to a 1263k unit rate from an upwardly revised 1270k unit rate prior; September's data was originally released at 1241k unit rate. Single-family starts fell 1.80% in October after declining 1.00% in September, while multi-family starts rose 10.30% following a 15.60% decline in September. The improvement in total starts was mainly driven by the gains in multi-family.
The curve has bull-flattened with the UST 10-Year yield down 1.9 bps from prior closing.