Today’s Market Update

Treasuries Off Highs; Yield Curve Resumes Post-FOMC Flattening
2019-09-19 11:27:11.933 GMT

By Edward Bolingbroke
(Bloomberg) — Treasuries slightly higher with the curve
resuming Wednesday’s flattening trend as non-U.S. investors
react to the FOMC’s policy decisions and forecasts; Treasuries
benefited during Asia session from sharp gains in both Aussie
bonds and JGBs. Gilts reacted minimally to BOE policy decision.
* Yields richer by more than 2bp at long-end of the curve with
front-end little changed; 2s10s flatter by ~1bp at 2.1bp
(reached as low as 1.1bp) with 10-year yields around 1.777%;
5s30s also tighter by ~1bp
** Treasuries outperform bunds by 3bp and gilts by 1.5bp;
European bonds on the back foot after ECB TLTRO 3 saw a small
take-up, and France and Spain sold new debt
* 3-month dollar Libor +0.30bp at 2.15888%; front-end flows
muted following the fix
* IG credit issuance slate includes CCDJ 3-year covered and
Armenia $500m 10-year; Thermo Fisher Scientific has mandated
banks for a EUR 5-part, $benchmark
* U.S. economic data calendar includes 2Q current account
balance, September Philadelphia Fed business outlook index and
initial jobless claims (8:30am), August leading index and
existing home sales (10am)
* Fed speakers resume Friday with Williams, Rosengren and Kaplan
slated

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 Month1.910%1.894%
6 Month1.888%1.880%
2 Year1.723%1.545%
5 Year1.636%1.477%
10 Year1.756%1.606%
30 Year2.198%2.087%
Yields updated each morning.
Source: Bloomberg

Benchmarks

PRIME5.00%
DJIA27,147.08
Crude Oil$59.24
YEN107.9900
Gold$1,502.17
1 Year CMT1.84%
1 Month LIBOR2.0570%
Fed Funds Effective1.90%
Next FOMC MeetingOctober 29th-30th
Source: Bloomberg

Economic Indicator Calendar

DateEventPeriodSurv (M)ActualPriorRevised
09/16Empire ManufacturingSep4.02.04.8
09/17Industrial Production MoMAug0.2%0.6%-0.2%-0.1%
Manufacturing (SIC) ProductionAug0.2%0.5%-0.4%
Capacity UtilizationAug77.6%77.9%77.5%
NAHB Housing Market IndexSep66.068.066.067.0
Net Long-term TIC FlowsJul$84.3b$99.1b$100.6b
Total Net TIC FlowsJul$43.8b$1.7b$21.0b
09/18MBA Mortgage Applications13-Sep-0.1%2.0%
Housing StartsAug1250k1364k1191k1215k
Housing Starts MoMAug5.0%12.3%-4.0%-1.5%
Building PermitsAug1300k1419k1336k1317k
Building Permits MoMAug-1.3%7.7%8.4%6.9%
FOMC Rate Decision (Upper Bound)18-Sep2.00%2.00%2.25%
FOMC Rate Decision (Lower Bound)18-Sep1.75%1.75%2.00%
Interest Rate on Excess Reserves19-Sep1.85%1.80%2.10%
09/19Current Account Balance2Q-$127.4b-$128.2b-$130.4b-$136.2b
Philadelphia Fed Business OutlookSep10.512.016.8
Initial Jobless Claims14-Sep213k208k204k206k
Continuing Claims7-Sep1672k1661k1670k1674k
Bloomberg Consumer Comfort15-Sep62.763.2
Bloomberg Economic ExpectationsSep49.548.5
Leading IndexAug-0.1%0.0%0.5%0.4%
Existing Home SalesAug5.38m5.49m5.42m
Existing Home Sales MoMAug-0.7%1.3%2.5%
09/20Household Change in Net Worth2Q$4691b
Source: Bloomberg