The selloff in Treasuries continues after Bloomberg published a report stating that Chinese government officials find Treasuries less appealing and have recommended slowing or stopping further purchases. To compound matters, the Treasury will be auctioning off new 10-year and 30-year notes and the increased supply has put further pressure on prices. The curve has continued to steepen, and the spread between the 2 and 10 year parts of the curve now sits at 61 bps, a 9 bps increase from last Friday’s close. The MBA mortgage applications index rose 8.3% last week, with the biggest increase coming from an 11.4% uptick in refi activity.

Hafizan Hamzah
Director, Investment Management Group

DateEventSurv(M)ActualPriorRevised
01/08Consumer Credit$18.000b$27.951b$20.519b$20.532b
01/09NFIB Small Business Optimism107.8104.9107.5
01/09JOLTS Job Openings6025587959965925
01/10MBA Mortgage Applications8.30%0.70%-1.60%
01/10Import Price Index MoM0.40%0.10%0.70%0.80%
01/10Import Price Index ex Petroleum MoM0.10%-0.20%0.10%0.20%
01/10Import Price Index YoY3.10%3.00%3.10%3.30%
01/10Export Price Index MoM0.30%-0.10%0.50%
01/10Export Price Index YoY2.60%3.10%
01/10Wholesale Inventories MoM0.70%0.70%
01/10Wholesale Trade Sales MoM0.60%0.70%
01/11PPI Final Demand MoM0.20%0.40%
01/11PPI Ex Food and Energy MoM0.20%0.30%
01/11PPI Ex Food, Energy, Trade MoM0.20%0.40%
01/11PPI Final Demand YoY3.00%3.10%
01/11PPI Ex Food and Energy YoY2.50%2.40%
01/11PPI Ex Food, Energy, Trade YoY2.40%
01/11Initial Jobless Claims245k250k
01/11Continuing Claims1920k1914k
01/11Revisions: Philadelphia Fed Manufacturing Index
01/11Bloomberg Jan. United States Economic Survey
01/11Bloomberg Consumer Comfort51.8
01/11Monthly Budget Statement-$26.5b-$138.5b
01/12CPI MoM0.10%0.40%
01/12CPI Ex Food and Energy MoM0.20%0.10%
01/12CPI YoY2.10%2.20%
01/12CPI Ex Food and Energy YoY1.70%1.70%
01/12CPI Index NSA246.372246.669
01/12CPI Core Index SA253.724
01/12Retail Sales Advance MoM0.50%0.80%
01/12Retail Sales Ex Auto MoM0.40%1.00%
01/12Retail Sales Ex Auto and Gas0.40%0.80%
01/12Retail Sales Control Group0.40%0.80%
01/12Real Avg Weekly Earnings YoY0.80%
01/12Real Avg Hourly Earning YoY0.20%
01/12Business Inventories0.40%-0.10%