Bond Market Commentary

Over in bond land, Treasury yields are higher before the opening bell Monday as markets await further developments in global trade talks. Investors are also looking ahead to this Wednesday’s preliminary purchasing managers’ index data for April. As of 6:53 AM ET, the yield on the 10-year note is rising three basis points (0.03%) to 4.35%, while the 30-year bond yield is increasing five basis points (0.05%) to 4.85%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is down four basis points (0.04%) to 3.76%.

Treasury yields were lower on Thursday, as initial jobless claims came in lower than expected despite continuing claims coming in higher than forecasted. Housing starts declined more than projected, though building permits unexpectedly rose. The yield on the 10-year note was down one basis point (0.01%) to 4.32%, while the 30-year bond yield rose two basis points (0.02%) to 4.80%. The yield on the two-year note decreased four basis points (0.04%) to 3.80%.

On the data front, the Leading Index for March is forecasted to show a decline of 0.5% versus the prior month’s decrease of 0.3%.

In the auction space, the U.S. Treasury is set to issue $76 billion in 13-week bills and $68 billion in 26-week bills.

In the central bank space, Federal Reserve Bank of Chicago President Austan Goolsbee is scheduled to speak today.

Mortgage rates were higher in the latest week. For the week ending April 17, the average 30-year fixed mortgage rate was up 21 basis points (0.21%) to 6.83%, versus 7.10% a year ago. The 15-year fixed mortgage rate also increased 21 basis points (0.21%) to 6.03%, versus 6.39% a year ago.

None at this time.

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