Today’s Market Update

Treasuries Pare Advance as U.S. Equities Bounce; Curve Steepens
2020-02-26 12:20:18.922 GMT

By Edward Bolingbroke
(Bloomberg) — Choppy trading in Treasuries so far
Wednesday saw 10-year futures test Tuesday’s record highs during
European morning before gains faded as U.S. equities recovered
and bunds fell. Curve is steeper as haven demand for the long-
end eases and investors mull potential for Fed easing to be
brought forward. Auction cycle resumes with 5-year note sale.
* Treasury 10-year yields around 1.365%, cheaper by 1.2bp vs.
Tuesday’s close; 2s10s, 5s30s steeper by 4.4bp and 2.6bp as
long-end underperforms
** Bunds led Treasuries lower after reports of a planned
suspension of a limit on fiscal spending while European
peripherals lag; Greek bonds notably weaker as rising credit
risks diminish the appeal of the region’s highest yields
* Treasury futures were knocked from session highs as bunds
dropped following 5-year auction in which a demand metric was
weakest since 2017
* Auction cycle resumes with $41b 5-year notes at 1pm ET,
concludes with $32b 7-year Thursday
** WI 5-year yield at around 1.240% is below 5-year auction
stops since September 2016 and about 20bp lower than last month’s
* 3-month dollar Libor -2.44bp at 1.61325%; it has dropped 8.3bp
since Wednesday
* Dollar issuance slate includes CPPIB $1b 5-year deal which has
launched; at least four issuers stood down Tuesday amid risk-
asset sell-off
* U.S. economic data calendar includes January new home sales at
10am; 4Q GDP revision, MNI Chicago PMI and University of
Michigan consumer sentiment are ahead this week
* Fed speaker slate empty; Evans and Bullard appear later this week

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 Month1.523%1.525%
6 Month1.449%1.534%
2 Year1.203%1.495%
5 Year1.190%1.504%
10 Year1.367%1.684%
30 Year1.853%2.132%
Yields updated each morning.
Source: Bloomberg

Benchmarks

PRIME4.75%
DJIA27,081.36
Crude Oil (WTI)$49.18
YEN110.4700
Gold$1,639.96
1 Year CMT1.29%
1 Month LIBOR1.6161%
Fed Funds Effective1.58%
Next FOMC MeetingMarch 17-18th, 2020
Source: Bloomberg

Economic Indicator Calendar

DateEventPeriodSurv (M)ActualPriorRevised
02/24Chicago Fed Nat Activity IndexJan-0.18-0.25-0.35
Dallas Fed Manf. ActivityFeb0.01.2-0.2
02/25House Price Purchase Index QoQ4Q1.3%1.1%1.2%
FHFA House Price Index MoMDec0.4%0.6%0.2%0.3%
S&P CoreLogic CS US HPI YoY NSADec3.60%3.75%3.54%3.46%
S&P CoreLogic CS US HPI NSA IndexDec212.59212.56212.42
S&P CoreLogic CS 20-City YoY NSADec2.85%2.85%2.55%2.54%
S&P CoreLogic CS 20-City MoM SADec0.40%0.43%0.48%0.47%
S&P CoreLogic CS 20-City NSA IndexDec218.73218.68218.65
Conf. Board Consumer ConfidenceFeb132.2130.7131.6130.4
Conf. Board ExpectationsFeb107.8102.5
Conf. Board Present SituationFeb165.1175.3
Richmond Fed Manufact. IndexFeb10-220
02/26MBA Mortgage Applications21-Feb1.5%-6.4%
New Home SalesJan718k764k694k708k
New Home Sales MoMJan3.5%7.9%-0.4%2.3%
02/27GDP Annualized QoQQ4 S2.1%2.1%
Personal ConsumptionQ4 S1.7%1.8%
GDP Price IndexQ4 S1.4%1.4%
Core PCE QoQQ4 S1.3%1.3%
Durable Goods OrdersJan P-1.5%2.4%
Durables Ex TransportationJan P0.2%-0.1%
Cap Goods Orders Nondef Ex AirJan P0.1%-0.8%
Cap Goods Ship Nondef Ex AirJan P0.0%-0.3%
Initial Jobless Claims22-Feb212k210k
Continuing Claims15-Feb1722k1726k
Bloomberg Consumer Comfort23-Feb65.6
Pending Home Sales MoMJan3.0%-4.9%
Pending Home Sales NSA YoYJan2.3%6.8%
Kansas City Fed Manf. ActivityFeb-1-1
02/28Advance Goods Trade BalanceJan-$68.5b-$68.3b
Wholesale Inventories MoMJan P-0.2%
Retail Inventories MoMJan0.0%0.0%
Personal IncomeJan0.3%0.2%
Personal SpendingJan0.3%0.3%
Real Personal SpendingJan0.1%
PCE Deflator MoMJan0.3%
PCE Deflator YoYJan1.6%
PCE Core Deflator MoMJan0.2%0.2%
PCE Core Deflator YoYJan1.6%
MNI Chicago PMIFeb46.342.9
U. of Mich. SentimentFeb F100.5100.9
U. of Mich. Current ConditionsFeb F113.8
U. of Mich. ExpectationsFeb F92.6
U. of Mich. 1 Yr InflationFeb F2.5%
U. of Mich. 5-10 Yr InflationFeb F2.3%
Source: Bloomberg