January 17, 2025
Over in bond land, Treasury yields are mostly lower before the opening bell Friday ahead of the release of industrial production and housing market data. As of 6:49 AM ET, the yield on the 10-year note is decreasing two basis points (0.02%) to 4.59%, while the 30-year bond yield is also falling two basis points (0.02%) to 4.83%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is unchanged at 4.23%.
Treasury yields were lower on Thursday as data showed retail sales rising less than forecasted in December. Initial jobless claims rose, though continuing claims declined. The yield on the 10-year note was down four basis points (0.04%) to 4.61%, while the 30-year bond yield fell three basis points (0.03%) to 4.85%. The yield on the two-year note decreased three basis points (0.03%) to 4.23%.
On the data front, housing starts for December are expected to come in at an annualized pace of 1.33 million versus the prior month’s 1.29 million, corresponding to an increase of 3.0% month-over-month (MOM) versus the prior month’s decline of 1.8%. Meanwhile, building permits for December are projected to come in at an annualized pace of 1.46 million versus the prior month’s 1.49 million, corresponding to a decrease of 2.2% MOM versus the prior month’s rise of 5.2%. Industrial production is expected to have expanded by 0.3% MOM in December, compared to the prior month’s decrease of 0.1%, while capacity utilization is forecasted to rise to 77.0% from the prior month’s 76.8%.
Mortgage rates were higher in the latest week. For the week ending January 16, the average 30-year fixed mortgage rate was up 11 basis points (0.11%) to 7.04%, versus 6.60% a year ago. The 15-year fixed mortgage rate increased 13 basis points (0.13%) to 6.27%, versus 5.76% a year ago.
Municipal Market Commentary
The Bloomberg 30-day visible supply rose $3.822 billion to $19.640 billion on Thursday, compared to the 12-month average of $11.514 billion.
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