Treasury prices are modestly lower following a relatively quiet overnight session from a trading volumes perspective. There are some positive reports on the U.S./China trade front, which are contributing positively to the tone in risk markets this morning. The White House and senior Chinese officials are reportedly discussing a deal that would ease current penalties against Chinese telecom giant ZTE in exchange for other U.S. demands. ZTE had been accused of secretly shipping goods to North Korea and Iran, both of which were under international trade sanctions. President Trump announced the ZTE negotiations via Twitter, and it’s being considered a surprising (and positive) change in tone between both parties. At the same time, Chinese regulators have restarted their review of Qualcomm Inc.’s acquisition of NXP Semiconductors NV, and Vice Premier Liu He will be travelling to the United States tomorrow for more trade talks with Treasury Secretary Steve Mnuchin. There are no economic releases on the calendar today, and April retail sales will headline activity tomorrow.

Jason Haley
Managing Director, Investment Management Group

Date TimeEventSurveyActualPriorRevised
05/15/2018Empire Manufacturing1515.8
05/15/2018Retail Sales Advance MoM0.30%0.60%
05/15/2018Retail Sales Ex Auto MoM0.50%0.20%
05/15/2018Retail Sales Ex Auto and Gas0.40%0.30%
05/15/2018Retail Sales Control Group0.40%0.40%
05/15/2018Business Inventories0.10%0.60%
05/15/2018NAHB Housing Market Index6969
05/15/2018Total Net TIC Flows$44.7b
05/15/2018Net Long-term TIC Flows$49.0b
05/15/2018Mortgage Delinquencies5.17%
05/15/2018MBA Mortgage Foreclosures1.19%
05/16/2018MBA Mortgage Applications-0.40%
05/16/2018Revisions: Housing Starts
05/16/2018Housing Starts1310k1319k
05/16/2018Housing Starts MoM-0.70%1.90%
05/16/2018Building Permits1350k1354k1379k
05/16/2018Building Permits MoM-2.10%2.50%4.40%
05/16/2018Industrial Production MoM0.60%0.50%
05/16/2018Manufacturing (SIC) Production0.50%0.10%
05/16/2018Capacity Utilization78.40%78.00%
05/17/2018Initial Jobless Claims215k211k
05/17/2018Continuing Claims1780k1790k
05/17/2018Philadelphia Fed Business Outlook2123.2
05/17/2018Bloomberg Economic Expectations52.5
05/17/2018Bloomberg Consumer Comfort55.8
05/17/2018Leading Index0.40%0.30%
05/21/2018Chicago Fed Nat Activity Index0.1