Treasury yields rae down 11 basis points on the front-end of the curve in sympathy with a sharp rally in European government bonds. The Eurozone composite PMI unexpectedly fell below 50 to 49.4 in the preliminary July readings. PMI tracks activity in the manufacturing and services sectors, and a below-50 reading indicates contraction in activity. Germany’s 2-year yield is down 36 basis points today, the biggest drop since 2008, amid growing recession fears. Later, the U.S. data was released, and the composite figure fell to 47.5 from 52.3 in June and an expected reading of 52.4. The decline was due to large 5.7 point drop in the services sector to 47 (52.7 expected). Treasuries have now extended their gains, with front-end yields now down 15-17 bps on the day as of 9:52am ET.
Chief Investment Officer
|07/18/22||NAHB Housing Market Index||65||55||67||—|
|07/18/22||Net Long-term TIC Flows||—||$155.3b||$87.7b||$87.2b|
|07/18/22||Total Net TIC Flows||—||$182.5b||$1.3b||-$2.7b|
|07/19/22||Housing Starts MoM||2.00%||-2.00%||-14.40%||-11.90%|
|07/19/22||Building Permits MoM||-2.70%||-0.60%||-7.00%||—|
|07/20/22||MBA Mortgage Applications||—||-6.30%||-1.70%||—|
|07/20/22||Existing Home Sales||5.35m||5.12m||5.41m||—|
|07/20/22||Existing Home Sales MoM||-1.10%||-5.40%||-3.40%||—|
|07/21/22||Philadelphia Fed Business Outlook||0.8||-12.3||-3.3||—|
|07/21/22||Initial Jobless Claims||240k||251k||244k||—|
|07/22/22||S&P Global US Manufacturing PMI||52||52.3||52.7||—|
|07/22/22||S&P Global US Services PMI||52.7||47||52.7||—|
|07/22/22||S&P Global US Composite PMI||52.4||47.5||52.3||—|
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