Today’s Market Update:

Treasuries ended up selling off overnight after the Senate voted in favor of a budget plan that will put lawmakers closer to taking up the issue of tax reform if the House of Representatives approve the budget plan without changes.

Existing home sales for September are forecast by the Bloomberg consensus to fall 0.9% from 5.35m to 5.30m. Resales have been soft this year and aren’t expected to move higher during the hurricane troubles of September.

Treasuries have remained higher in yield this morning. Two-year Notes are up 3.6 basis points at 1.566%, five-year Notes are up 5.2 basis points at 2.005%, and the benchmark 10-Year Bond is up 5.2 basis points at 2.370%.

Despite the positive economic data yields remain lower this morning influenced by Nasdag-led decline for U.S stock futures after a report that iPhone orders have been cut hit Apple’s Taiwanese suppliers. Two-year Notes are down 2.0 basis points at 1.543%, five-year Notes are down 3.3 basis points at 1.960%, and the benchmark 10-Year Bond is down 3.4 basis points at 2.312%.

Treasury Yields

Term  Current  Last Month
3 Month1.093%1.028%
6 Month1.255%1.188%
2 Year1.564%1.438%
5 Year2.003%1.874%
10 Year2.370%2.268%
30 Year2.885%2.808%
Yields updated each morning.
Source: Bloomberg

Benchmarks

PRIME4.25%
DJIA23,163.04
Crude Oil$50.89
YEN113.2795
Gold$1,283.41
1 Year CMT1.41%
1 Month LIBOR1.23888%
Fed Funds Effective1.16%
Next FOMC MeetingNovember 1, 2017
Source: Bloomberg

Economic Indicator Calendar

DateEventPeriodSurveyActualPrior
10/23/2017Chicago Fed Nat Activity IndexSep-0.10-0.31
10/24/2017Markit US Manufacturing PMIOct P53.553.1
Markit US Services PMIOct P55.255.3
Markit US Composite PMIOct PN/A54.8
Richmond Fed Manufact. IndexOct1619
10/25/2017MBA Mortgage Applications20-OctN/A3.60%
Durable Goods OrdersSep P1.00%2.00%
Durables Ex TransportationSep P0.50%0.50%
Cap Goods Orders Nondef Ex AirSep P0.30%1.10%
Cap Goods Ship Nondef Ex AirSep P0.10%1.10%
FHFA House Price Index MoMAug0.40%0.20%
New Home SalesSep554k560k
New Home Sales MoMSep-1.10%-3.40%
10/26/2017Wholesale Inventories MoMSep P0.40%0.90%
Initial Jobless Claims21-Oct235k222k
Continuing Claims14-Oct1890K1888k
Advance Goods Trade BalanceSep-$63.9b-$63.3b
Retail Inventories MoMSepN/A0.70%
Bloomberg Consumer Comfort22-OctN/A51.1
Pending Home Sales MoMSep0.50%-2.60%
Pending Home Sales NSA YoYSepN/A-3.10%
Kansas City Fed Manf. ActivityOct1717
10/27/2017GDP Annualized QoQ3Q A2.50%3.10%
Personal Consumption3Q A2.10%3.30%
GDP Price Index3Q A1.80%1.00%
Core PCE QoQ3Q A1.30%0.90%
U. of Mich. SentimentOct F100.8101.1
Source: Bloomberg