Treasuries are little changed this morning after a relatively quiet overnight session in which they traded slightly weaker. Italian leaders officially removed their request for a €250bn write-off of their debt. News coming out of the current talks between Chinese and US officials have been mixed, with Chinese officials stating that they don’t want to see an escalation of trade tensions and that they hope that the two sides can come together. However, when asked if he thought that tariffs would be placed on Chinese goods, Senator Orrin Hatch responded that he thought that they would go into effect.

On the data front, jobless claims increased by 11,000 from the prior week and came in 7,000 higher than expected. The number of Americans still filing for unemployment benefits by 87,000 from the prior week. Overall, despite the increase in claims this week, the jobless claims number remains near historic lows and continues to point to tight labor market.

Hafizan Hamzah
Director, Investment Management Group

Date TimeEventSurveyActualPriorRevised
05/15/2018Empire Manufacturing1520.115.8
05/15/2018Retail Sales Advance MoM0.30%0.30%0.60%0.80%
05/15/2018Retail Sales Ex Auto MoM0.50%0.30%0.20%0.40%
05/15/2018Retail Sales Ex Auto and Gas0.40%0.30%0.30%0.40%
05/15/2018Retail Sales Control Group0.40%0.40%0.40%0.50%
05/15/2018Business Inventories0.10%0.00%0.60%
05/15/2018NAHB Housing Market Index69706968
05/15/2018Total Net TIC Flows-$38.5b$44.7b$47.5b
05/15/2018Net Long-term TIC Flows$61.8b$49.0b
05/16/2018MBA Mortgage Applications-2.70%-0.40%
05/16/2018Revisions: Housing Starts
05/16/2018Housing Starts1310k1287k1319k1336k
05/16/2018Housing Starts MoM-0.70%-3.70%1.90%3.60%
05/16/2018Building Permits1350k1352k1354k1377k
05/16/2018Building Permits MoM-2.10%-1.80%2.50%4.10%
05/16/2018Industrial Production MoM0.60%0.70%0.50%0.70%
05/16/2018Manufacturing (SIC) Production0.50%0.50%0.10%0.00%
05/16/2018Capacity Utilization78.40%78.00%78.00%77.60%
05/16/2018Mortgage Delinquencies4.63%5.17%
05/16/2018MBA Mortgage Foreclosures1.16%1.19%
05/17/2018Initial Jobless Claims215k222k211k
05/17/2018Continuing Claims1780k1707k1790k1794k
05/17/2018Philadelphia Fed Business Outlook2134.423.2
05/17/2018Bloomberg Economic Expectations52.5
05/17/2018Bloomberg Consumer Comfort55.8
05/17/2018Leading Index0.40%0.30%