Bond Market Commentary

Over in bond land, markets are closed for the holiday. Investors are looking forward to fresh Federal Reserve (Fed) commentary, along with this week’s economic data which includes retail sales, industrial production, and updates on the housing market with home builder sentiment, building permits, and housing starts.

Treasury yields were mostly higher on Friday as the headline Producer Price Index did not change month-over-month, while the core measure increased less than forecasted. However, the annual changes did come in above projections at 1.8% and 2.8%, respectively, following upward revisions to the prior month’s data. The University of Michigan’s preliminary consumer sentiment reading unexpectedly decreased, while consumer expectations for short-term inflation rose. The yield on the 10-year note was up four basis points (0.04%) to 4.10%, while the 30-year bond yield rose five basis points (0.05%) to 4.41%. The yield on the two-year note was unchanged at 3.96%.

In the central bank space, Minneapolis Fed President Neel Kashkari will participate in a panel discussion and a fireside chat, while Fed Governor Christopher Waller will speak on the economic outlook.

Mortgage rates were higher in the latest week. For the week ending October 10, the average 30-year fixed mortgage rate was up 20 basis points (0.20%) to 6.32%, versus 7.57% a year ago. The 15-year fixed mortgage rate increased 16 basis points (0.16%) to 5.41%, versus 6.89% a year ago.

None at this time.

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