Treasury yields are 2-5 basis points lower in a modest retracement of yesterday’s selloff.
With the July CPI report in the rear-view mirror, market focus now shifts to Fed Chair Powell’s speech from Jackson Hole a week from today. Other than Powell’s speech next week, the calendar is relatively light. The minutes of the July 31 FOMC meeting will be released on Wednesday afternoon, in addition to the weekly jobless claims data on Thursday morning. Housing starts fell 6.8% In July, weighed down by a 14.1% decline in single-family starts. Building permits for new single-family starts were essentially flat in July versus the prior month. In related news, Vice President Harris will announce multiple policy proposals to improve housing affordability according to a Wall Street Journal report, including offering up to $25,000 to first-time homebuyers who meet certain criteria. Harris is also expected to propose tax incentives to support construction of 3 million new housing units and funding to local governments to build or preserve affordable housing units.
