May 10, 2024
Over in bond land, Treasury yields are mostly lower before the opening bell Friday as investors look forward to comments from various Federal Reserve (Fed) speakers scheduled for today. The preliminary University of Michigan Consumer Sentiment Index for May will be released along with April’s monthly budget statement. The yield on the 10-year note is unchanged at 4.45%, while the 30-year bond yield is falling one basis point (0.01%) to 4.60%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is down one basis point (0.01%) to 4.81%.
Treasury yields were lower on Thursday, as investors digested the latest jobless claims data, which came in higher than projections. The yield on the 10-year note was down four basis points (0.04%) to 4.45%, while the 30-year bond yield fell three basis points (0.03%) to 4.61%. The yield on the two-year note decreased two basis points (0.02%) to 4.82%.
On the data front today, the preliminary reading of the University of Michigan Consumer Sentiment Index is expected to record 76.2 for May, down from the prior month’s reading of 77.2. Meanwhile, May’s preliminary readings for the University of Michigan’s one- and 5-10-year inflation expectations are forecasted at 3.2% and 3.0%, respectively, both unchanged from the prior month’s readings. The Monthly Budget Statement for April is forecasted to register a surplus of $250.0 billion versus the prior month’s surplus of $176.2 billion.
In the central bank space, multiple Fed speakers are scheduled to speak today.
Mortgage rates were lower in the latest week. For the week ending May 9, the average 30-year fixed mortgage rate was down 13 basis points (0.13%) at 7.09%, versus 6.35% a year ago. The 15-year fixed mortgage rate decreased nine basis points (0.09%) to 6.38%, versus 5.75% a year ago.
Municipal Market Commentary
The Bloomberg 30-day visible supply fell $645 million to $9.964 billion on Thursday, above the 12-month average of $9.134 billion.
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