Today’s Market Update

Treasuries Erase Declines; Powell Speaks After Market Close
2019-05-20 11:31:21.836 GMT

By Edward Bolingbroke
(Bloomberg) — Treasuries are little changed in early U.S.
trading Monday after erasing declines; Asia-session losses
spurred by strong Japan GDP were recouped as weakness in
European stocks and U.S. equity index futures supported bunds
during London morning.
* Yields nearly flat across the curve, 10-year at 2.391% after
erasing an increase of 2.5bp; curve spreads also within a basis
point of Friday’s levels
** Bunds cheaper by 0.3bp vs. Treasuries, gilts 1bp
** Treasury yields declined last week, with 2-year falling to a
2019 low, as U.S.-China trade conflict escalated
* Fed Chair Powell is slated to speak after U.S. market close
Monday; other focal points this week include release of minutes
of May 1 FOMC meeting, after which Treasury curve bear flattened
on Powell’s comments about the transient nature of factors
keeping inflation below the Fed’s 2% target
* UST supply this week is limited to $11b 10-year TIPS reopening
Thursday
* Latest CFTC positioning data showed asset managers
aggressively adding to net long positions in 10-year and ultra-
long futures; speculators extended short positioning in ultra-
long futures to new record level
* 3-month dollar Libor +0.15bp at 2.52338%; front-end flows
muted following the fix
* U.S. economic data calendar includes April Chicago Fed
national activity index (8:30am); ahead this week are existing
home sales, Markit manufacturing PMI, new home sales and durable
goods orders
* Fed speakers include Harker (9:30am), Clarida and Williams
(1pm) while Powell speaks at Atlanta Fed financial markets
conference (7pm); Evans, Rosengren, Bullard, Williams, Bostic,
Kaplan, Daly and Barkin are slated to 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 Month2.365%2.412%
6 Month2.394%2.456%
2 Year2.208%2.380%
5 Year2.183%2.371%
10 Year2.396%2.560%
30 Year2.823%2.961%
Yields updated each morning.
Source: Bloomberg

Benchmarks

PRIME5.50%
DJIA25,713.56
Crude Oil$63.26
YEN109.9500
Gold$1,278.00
1 Year CMT2.33%
1 Month LIBOR2.442%
Fed Funds Effective2.37%
Next FOMC MeetingJune 18th-19th
Source: Bloomberg

Economic Indicator Calendar

DateEventPeriodSurv (M)ActualPriorRevised
05/20Chicago Fed Nat Activity IndexApr -0.2-0.45-0.150.05
05/21Existing Home SalesApr 5.35m5.21m
Existing Home Sales MoMApr 2.70%-4.90%
05/22MBA Mortgage Applications17-May-0.60%
FOMC Meeting Minutes1-May
05/23Initial Jobless Claims18-May215k212k
Continuing Claims11-May1668k1660k
Bloomberg Consumer Comfort19-May59.9
Bloomberg Economic ExpectationsMay50
Markit US Manufacturing PMIMay P52.652.6
Markit US Services PMIMay P53.553
Markit US Composite PMIMay P53
New Home SalesApr 675k692k
New Home Sales MoMApr -2.50%4.50%
Kansas City Fed Manf. ActivityMay65
05/24Durable Goods OrdersApr P-2.00%2.60%
Durables Ex TransportationApr P0.10%0.30%
Cap Goods Orders Nondef Ex AirApr P-0.30%1.40%
Cap Goods Ship Nondef Ex AirApr P-0.20%0.00%
Source: Bloomberg