Treasuries are unchanged this morning following an overnight risk-on trade which pushed rates slightly higher. Buoyed by news that China agreed to cut tariffs on cars to 15%, investors rotated out of Treasuries and into equities and oil. EU bonds saw some spread tightening in response to the nomination of a relatively unknown law professor to be Italy’s new Prime Minister. The economic calendar is light today, with the Richmond Fed’s manufacturing index the only data release on the docket.

Hafizan Hamzah
Director, Investment Management Group

05/21Chicago Fed Nat Activity Index0.30.340.10.32
05/22Richmond Fed Manufact. Index10-3
05/23MBA Mortgage Applications-2.70%
05/23Markit US Manufacturing PMI56.556.5
05/23Markit US Services PMI5554.6
05/23Markit US Composite PMI54.9
05/23New Home Sales679k694k
05/23New Home Sales MoM-2.20%4.00%
05/23Revisions: New Homes
05/23FOMC Meeting Minutes
05/24Initial Jobless Claims220k222k
05/24Continuing Claims1748k1707k
05/24House Price Purchase Index QoQ0.70%1.60%
05/24FHFA House Price Index MoM0.60%0.60%
05/24Bloomberg Consumer Comfort54.6
05/24Existing Home Sales5.55m5.60m
05/24Existing Home Sales MoM-0.90%1.10%
05/24Kansas City Fed Manf. Activity2026
05/25Durable Goods Orders-1.30%2.60%
05/25Durables Ex Transportation0.50%0.10%
05/25Cap Goods Orders Nondef Ex Air0.70%-0.40%
05/25Cap Goods Ship Nondef Ex Air0.40%-0.80%
05/25Revisions: Wholesale Trade
05/25Revisions: Retail Sales
05/25U. of Mich. Sentiment98.898.8
05/25U. of Mich. Current Conditions113.3
05/25U. of Mich. Expectations89.5
05/25U. of Mich. 1 Yr Inflation2.80%
05/25U. of Mich. 5-10 Yr Inflation2.50%