The Treasury curve bull flattened overnight in response to weak UK construction data, while oil prices stayed above $60 as the market has fears that the protests in Iran could disrupt production. Mortgage applications rose by 0.7% last week according the MBA’s US Mortgage Index, with the increase driven by an increase in refinancing activity rather than purchases. This afternoon the Fed will release the minutes from the December FOMC meeting.

Hafizan Hamzah
Director, Investment Management Group

01/02Markit US Manufacturing PMI5555.155
01/03MBA Mortgage Applications0.70%-3.50%
01/03Construction Spending MoM0.50%0.80%1.40%0.90%
01/03ISM Manufacturing58.259.758.2
01/03ISM Prices Paid64.56965.5
01/03ISM New Orders69.464
01/03ISM Employment5759.7
01/03FOMC Meeting Minutes
01/03Wards Total Vehicle Sales17.50m17.35m17.40m
01/03Wards Domestic Vehicle Sales13.35m13.38m13.46m
01/04Challenger Job Cuts YoY30.10%
01/04ADP Employment Change190k190k
01/04Initial Jobless Claims242k245k
01/04Continuing Claims1925k1943k
01/04Markit US Services PMI52.552.4
01/04Markit US Composite PMI53
01/04Bloomberg Consumer Comfort52.4
01/05Change in Nonfarm Payrolls190k228k
01/05Two-Month Payroll Net Revision
01/05Change in Private Payrolls185k221k
01/05Change in Manufact. Payrolls20k31k
01/05Unemployment Rate4.10%4.10%
01/05Average Hourly Earnings MoM0.30%0.20%
01/05Average Hourly Earnings YoY2.50%2.50%
01/05Average Weekly Hours All Employees34.534.5
01/05Labor Force Participation Rate62.70%
01/05Underemployment Rate8.00%
01/05Trade Balance-$50.0b-$48.7b
01/05Revisions: Seasonally Adjusted Household Survey data
01/05ISM Non-Manf. Composite57.557.4
01/05Factory Orders1.10%-0.10%
01/05Factory Orders Ex Trans0.80%
01/05Durable Goods Orders1.30%
01/05Durables Ex Transportation-0.10%
01/05Cap Goods Orders Nondef Ex Air-0.10%
01/05Cap Goods Ship Nondef Ex Air0.30%