Today’s Market Update

Treasuries Drift Lower, Curve Steepens on China Trade Optimism
2019-08-16 11:27:26.629 GMT

By Edward Bolingbroke
(Bloomberg) — Treasuries drifted lower over Asia session
and into early European session, paring some Thursday’s rally. S&P
500 futures push above prior day’s highs amid renewed trade
optimism after U.S. President Donald Trump says a call is
planned very soon with Chinese leader Xi Jinping.
* Yields up 0.5bp to 3.2bp across the curve in a bear steepening
move with 2s10s wider by ~1bp and 5s30s by ~2bp; 10-year yields
~1.54% are cheaper by 1.5bp but remain towards richer end of
1.473% to 1.733% weekly range
** Bunds outperform Treasuries, while gilts underperform as
money markets trim pricing on Bank of England easing; Chancellor
Sajid Javid holds Brexit talks in Berlin later Friday
* S&P 500 futures up as much as 1.1% intraday
* 3-month dollar Libor +1.213bp at 2.13588%; front-end flows
muted; prior day saw the largest decline in the fixing since
Aug. 2
* U.S. economic calendar includes July housing starts/building
permits (8:30am ET) and August preliminary University Michigan
sentiment (10am)

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

 

Treasury Yields

Term  Current  Last Month
3 Month1.882%2.144%
6 Month1.865%2.054%
2 Year1.513%1.850%
5 Year1.443%1.868%
10 Year1.554%2.103%
30 Year2.005%2.612%
Yields updated each morning.
Source: Bloomberg

Benchmarks

PRIME5.25%
DJIA25,579.39
Crude Oil$54.63
YEN106.3520
Gold$1,513.07
1 Year CMT1.73%
1 Month LIBOR2.1974%
Fed Funds Effective2.11%
Next FOMC MeetingSept 17th-18th
Source: Bloomberg

Economic Indicator Calendar

DateEventPeriodSurv (M)ActualPriorRevised
08/12Monthly Budget StatementJul-$120.0b-$119.7b-$76.9b
Mortgage Delinquencies2Q4.53%4.42%
MBA Mortgage Foreclosures2Q0.90%0.92%
08/13NFIB Small Business OptimismJul104.0104.7103.3
CPI MoMJul0.3%0.3%0.1%
CPI Ex Food and Energy MoMJul0.2%0.3%0.3%
CPI YoYJul1.7%1.8%1.6%
CPI Ex Food and Energy YoYJul2.1%2.2%2.1%
CPI Core Index SAJul263.302263.569262.803
CPI Index NSAJul256.457256.571256.143
Real Avg Hourly Earning YoYJul1.3%1.5%
Real Avg Weekly Earnings YoYJul0.8%1.2%
08/14MBA Mortgage Applications9-Aug21.7%5.3%
Import Price Index MoMJul-0.1%0.2%-0.9%-1.1%
Import Price Index ex Petroleum MoMJul-0.1%0.0%-0.4%
Import Price Index YoYJul-2.0%-1.8%-2.0%
Export Price Index MoMJul-0.1%0.2%-0.7%-0.6%
Export Price Index YoYJul-0.9%-1.6%
08/15Empire ManufacturingAug2.04.84.3
Nonfarm Productivity2Q P1.4%2.3%3.4%3.5%
Unit Labor Costs2Q P1.8%2.4%-1.6%5.5%
Philadelphia Fed Business OutlookAug9.516.821.8
Retail Sales Advance MoMJul0.3%0.7%0.4%0.3%
Retail Sales Ex Auto MoMJul0.4%1.0%0.4%0.3%
Retail Sales Ex Auto and GasJul0.4%0.9%0.7%0.6%
Retail Sales Control GroupJul0.4%1.0%0.7%
Initial Jobless Claims10-Aug212k220k209k211k
Continuing Claims3-Aug1685k1726k1684k1687k
Industrial Production MoMJul0.1%-0.2%0.0%0.2%
Manufacturing (SIC) ProductionJul-0.3%-0.4%0.4%0.6%
Capacity UtilizationJul77.8%77.5%77.9%77.8%
Bloomberg Consumer Comfort11-Aug61.262.9
NAHB Housing Market IndexAug65.066.065.0
Business InventoriesJun0.1%0.0%0.3%
Net Long-term TIC FlowsJun$99.1b$3.5b
Total Net TIC FlowsJun$1.7b$32.9b
08/16Housing StartsJul1255k1191k1253k1241k
Housing Starts MoMJul0.2%-4.0%-0.9%-1.8%
Building PermitsJul1270k1336k1220k1232k
Building Permits MoMJul3.1%8.4%-6.1%-5.2%
U. of Mich. SentimentAug P97.092.198.4
U. of Mich. Current ConditionsAug P107.4110.7
U. of Mich. ExpectationsAug P82.390.5
U. of Mich. 1 Yr InflationAug P2.7%2.6%
U. of Mich. 5-10 Yr InflationAug P2.6%2.5%
Source: Bloomberg