February 2, 2026
Yields lower ahead of PMI data
Over in bond land, Treasury yields are mostly lower before the opening bell Monday ahead of today’s January manufacturing purchasing managers’ index (PMI) data release from the Institute for Supply Management (ISM), along with a finalized reading from S&P Global. Markets are also expecting a quick resolution to the partial government shutdown which began following funding lapsing over the weekend. As of 6:55 AM ET, the yield on the 10-year note is decreasing two basis points (0.02%) to 4.22%, while the 30-year bond yield is falling one basis point (0.01%) to 4.86%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is unchanged at 3.52%.
Treasury yields were mixed on Friday following President Donald Trump’s announcement that he will nominate Kevin Warsh as the new Federal Reserve (Fed) Chair. The headline and core Producer Price Index (PPI) climbed more than expected, rising by 0.5% and 0.7% month-over-month, respectively, while the year-over-year growth rose by 3.0% and 3.3%, respectively. The yield on the 10-year note was up one basis point (0.01%) to 4.24%, while the 30-year bond yield rose two basis points (0.02%) to 4.87%. The yield on the two-year note decreased four basis points (0.04%) to 3.52%.
On the data front, the finalized reading of S&P Global’s manufacturing PMI for January is expected to come in at 52.0, slightly up from the previous reading of 51.9. The ISM manufacturing PMI and prices paid component for January are expected to come in at 48.5 and 59.3, respectively, versus the prior month’s 47.9 and 58.5, respectively.
Mortgage rates were higher in the latest week. For the week ending January 29, the average 30-year fixed mortgage rate was up one basis point (0.01%) to 6.10%, versus 6.95% a year ago. The 15-year fixed mortgage rate increased five basis points (0.05%) to 5.49%, versus 6.12% a year ago.
In the auction space, the U.S. Treasury is set to issue $89 billion in 13-week bills and $77 billion in 26-week bills.
In the central bank space, Atlanta Fed President Raphael Bostic is scheduled to speak today.
Municipal Market Commentary
The Bloomberg 30-day visible supply rose $456 million to $11.648 billion on Friday, below the 12-month average of $13.840 billion.
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