Treasuries are slightly higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.954% after closing at 2.971% prior.
Treasuries extended yesterday’s gains during the overnight session as the benchmark 10-year yield slipped to session lows below 2.960%. The yield curve continued to flatten which saw the yield spread between 3 and 5-year yields inverted for the first time since 2007. In addition to the central bank’s recent dovish tone, the yield curve inversion could potentially be foreshadowing the end of the Fed’s tightening path. In equities, the rally sparked by the trade truce between U.S. and China dissipated overnight as investors grew skeptical that the two countries made any meaningful progress. Elsewhere, oil extended its rebound and advanced for a second day as West Texas Intermediate crude climbed as much as 1.4 percent to over $53.70 a barrel.
There are no available reports on today’s economic calendar. Additionally, the U.S. financial markets will be closed on Wednesday for a national day of mourning to honor former U.S. President George H.W. Bush. As a result, Fed Chairman Powell’s scheduled testimony to Congress for Wednesday has been canceled. Still to come this week, the latest version of the Fed’s Beige Book will be released tomorrow along with the MBA Mortgage Applications for the week ended November 30. Thursday will feature the October Trade Balance, 3Q Nonfarm Productivity and Unit Labor Costs as well as the October Factory Orders and Durable Goods Orders. Then on Friday, we will have the monthly U.S. employment reports for November.
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Treasuries extended yesterday’s gains during the overnight session as the benchmark 10-year yield slipped to session lows below 2.960%. The yield curve continued to flatten which saw the yield spread between 3 and 5-year yields inverted for the first time since 2007. In addition to the central bank’s recent dovish tone, the yield curve inversion could potentially be foreshadowing the end of the Fed’s tightening path. In equities, the rally sparked by the trade truce between U.S. and China dissipated overnight as investors grew skeptical that the two countries made any meaningful progress. Elsewhere, oil extended its rebound and advanced for a second day as West Texas Intermediate crude climbed as much as 1.4 percent to over $53.70 a barrel.
There are no available reports on today’s economic calendar. Additionally, the U.S. financial markets will be closed on Wednesday for a national day of mourning to honor former U.S. President George H.W. Bush. As a result, Fed Chairman Powell’s scheduled testimony to Congress for Wednesday has been canceled. Still to come this week, the latest version of the Fed’s Beige Book will be released tomorrow along with the MBA Mortgage Applications for the week ended November 30. Thursday will feature the October Trade Balance, 3Q Nonfarm Productivity and Unit Labor Costs as well as the October Factory Orders and Durable Goods Orders. Then on Friday, we will have the monthly U.S. employment reports for November.
The curve has bull-flattened with the UST 10-Year yield down 1.7 bps from prior closing.