Treasuries are higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.320% after closing at 2.352% during the prior session.
Treasuries opened higher this morning as focus on the markets shifted from tax legislation headlines to U.S. Government shutdown concerns. A Republican plan over the debt ceiling to avoid a federal shutdown got dismantled last night by majority leaders sending markets into a risk-off mode. The U.S. continues to face a potential partial government shutdown if legislative leaders do not agree on a spending bill by December 8th.
The economic calendar continued today with the ADP Employment Change reporting 190k new jobs for November, which came in line with market expectations following a 235k gain in October. Also today, MBA Mortgage Applications rose 4.70% for the week ended December 1st, exceeding the -3.10% change during the prior week. Finally, Nonfarm Productivity for the 3Q stood unchanged from its previous mark at 3.00%, but came in below expectations of 3.30%. Unit Labor Costs fell 0.20% during the quarter following a 0.50% gain prior.
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Treasuries opened higher this morning as focus on the markets shifted from tax legislation headlines to U.S. Government shutdown concerns. A Republican plan over the debt ceiling to avoid a federal shutdown got dismantled last night by majority leaders sending markets into a risk-off mode. The U.S. continues to face a potential partial government shutdown if legislative leaders do not agree on a spending bill by December 8th.
The economic calendar continued today with the ADP Employment Change reporting 190k new jobs for November, which came in line with market expectations following a 235k gain in October. Also today, MBA Mortgage Applications rose 4.70% for the week ended December 1st, exceeding the -3.10% change during the prior week. Finally, Nonfarm Productivity for the 3Q stood unchanged from its previous mark at 3.00%, but came in below expectations of 3.30%. Unit Labor Costs fell 0.20% during the quarter following a 0.50% gain prior.
The curve has bull-flattened with the UST 10-Year yield down 3.2 bps from prior closing.