Bond Market Commentary

Over in bond land, Treasury yields are mostly higher before the opening bell Friday ahead of today’s preliminary September reading of consumer sentiment from the University of Michigan. As of 6:41 AM ET, the yield on the 10-year note is rising one basis point (0.01%) to 4.03%, while the 30-year bond yield is unchanged at 4.65%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is up one basis point (0.01%) to 3.55%.

Treasury yields were mostly lower on Thursday as the headline Consumer Price Index (CPI) registered a stronger-than-expected 0.4% month-over-month (MOM) increase in August and accelerated to 2.9% year-over-year (YOY) on a headline basis, in line with expectations. The core CPI (which excludes food and energy) rose 0.3% MOM and 3.1% YOY in August, similar to the prior month. Meanwhile, initial jobless claims rose significantly to the highest level in nearly four years and continuing claims came in lower than projected. The yield on the 10-year note was down three basis points (0.03%) to 4.02%, while the 30-year bond yield fell five basis points (0.05%) to 4.65%. The yield on the two-year note was unchanged at 3.54%.

On the data front, the University of Michigan’s preliminary September reading of consumer sentiment is forecasted to come in at 58.0, lower than the prior month’s 58.2. The one- and 5-10-year inflation expectations for September from the University of Michigan are expected to come in at 4.8% and 3.4%, respectively, compared to the prior month’s 4.8% and 3.5%, respectively.

Mortgage rates were lower in the latest week. For the week ending September 11, the average 30-year fixed mortgage rate was down 15 basis points (0.15%) to 6.35%, versus 6.20% a year ago. The 15-year fixed mortgage rate decreased 10 basis points (0.10%) to 5.50%, versus 5.27% a year ago.

None at this time.

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