Today’s Market Update

Treasuries Rally After Soft European PMIs; Futures Volumes Heavy
2019-04-18 11:24:31.596 GMT

By Edward Bolingbroke
(Bloomberg) — Treasuries hold most of an advance that
peaked during European morning spurred by soft German
manufacturing PMI, adding to gains on heavy volume toward end of
Asia session. U.S. economic calendar includes March retail sales
and April preliminary Markit manufacturing PMI ahead of Sifma-
recommended 2pm close for cash trading, with U.S. markets closed
Friday.
* Yields richer by 2bp to 4bp across the curve with gains led by
5- to 10-year sectors; 10-year yields dropped as low as 2.547%,
before settling back ~2.56% in early U.S. session
** German 10-year richer by 3.5bp after falling as much as 5bp;
a flurry of bund futures traded after German manufacturing PMI
rose to 44.5 versus 45 estimate
* TYM9 futures volume was ~40% above the 20-day average at 7am,
bunds 45% over
* 3-month dollar Libor -1.04bp at 2.58113%; front-end flows
muted following the fix
* U.S. economic data calendar includes initial jobless claims,
March retail sales, April Philly Fed business outlook (8:30am),
April preliminary Markit manufacturing PMI (9:45am) and March
leading indicators and February business inventories (10am)
* Fed speakers include Bostic at 12:10pm
* Treasury is slated to sell $17b 5-year TIPS original issue at
11:30am

To contact the reporter on this story:
Edward Bolingbroke in New York at ebolingbrok1@bloomberg.net
To contact the editors responsible for this story:
Benjamin Purvis at bpurvis@bloomberg.net
Elizabeth Stanton

Treasury Yields

Term  Current  Last Month
3 Month2.419%2.432%
6 Month2.454%2.496%
2 Year2.384%2.452%
5 Year2.374%2.412%
10 Year2.563%2.603%
30 Year2.970%3.017%
Yields updated each morning.
Source: Bloomberg

Benchmarks

PRIME5.50%
DJIA26,449.54
Crude Oil$63.83
YEN111.92
Gold$1,274.49
1 Year CMT2.43%
1 Month LIBOR2.47%
Fed Funds Effective2.40%
Next FOMC MeetingApril 30th-May 1st, 2019
Source: Bloomberg

Economic Indicator Calendar

DateEventPeriodSurv (M)ActualPriorRevised
04/15Empire ManufacturingApr8.010.13.7
Net Long Term TIC Flows Feb -$7.2b
Total Net TIC FlowsFeb -$143.7b
04/16Industrial Production MoMMar 0.2%-0.1%0.1%0.0%
Manufacturing (SIC) ProductionMar 0.1%0.0%-0.4%-0.3%
Capacity UtilizationMar 79.2%78.8%78.2%79.1%
NAHB Housing Market IndexApr 636362
04/17MBA Mortgage Mortgage ApplicationsApr 12 -3.5%-5.6%
Trade Balance Feb -$53.5b-$49.4b-$51.1b
Wholesale Inventories MoMFeb0.3%1.2%
Wholesale Trade Sales MoM Feb 0.5%
U.S. Federal Reserve Releases Beige Book
04/18Retail Sales Advance MoMMar 1.0%1.6%-0.2%
Retail Sales Ex Auto MoMMar0.7%1.2%-0.4%-0.2%
Retail Sales Ex Auto and Gas Mar0.4%0.9%-0.6%-0.7%
Retail Sales Control Group Mar 0.4%1.0%-0.2%-0.3%
Philadelphia Fed Business Out Mar 11.08.513.7
Initial Jobless Claims Apr 13205k192k196k
Continuing Claims Apr 61722k1653k1713k
Bloomberg Consumer Comfort Apr 1459.8
Bloomberg Economic ExpectationsApr47.5
Markit US Manufacturing PMIApr 52.852.4
Markit US Services PMIMar 55.055.3
Markit US Composite PMIApr 654.6
Leading Index Apr 0.4%0.2%
Business Inventories Feb 0.3%0.8%
04/19Housing Starts Mar 1230k1162k
Housing Starts MoMMar 5.9%-8.7%
Building PermitsMar 1300k1296k1291k
Building Permits MoMMar 0.7%-1.6%-2.0%
Chicago Fed Nat Activity IndexMar -0.29
Existing Home Sales Mar 5.28m5.51m
Existing Home Sales MoM Mar -4.3%11.8%
Source: Bloomberg