November 22, 2024
Over in bond land, Treasury yields are lower before the opening bell Friday ahead of November’s preliminary purchasing managers’ indexes (PMIs) and finalized University of Michigan consumer sentiment data. As of 6:49 AM ET, the yield on the 10-year note is decreasing three basis points (0.03%) to 4.39%, while the 30-year bond yield is falling two basis points (0.02%) to 4.58%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is down two basis points (0.02%) to 4.33%.
Treasury yields were mostly higher on Thursday as the latest unemployment claims data showed an unexpected decline in initial claims, but a greater-than-forecasted increase in continuing claims. The yield on the 10-year note was up one basis point (0.01%) to 4.42%, while the 30-year bond yield was unchanged at 4.60%. The yield on the two-year note increased four basis points (0.04%) to 4.35%.
On the data front, the preliminary reading of S&P Global’s November manufacturing and services PMIs are expected to come in at 48.9 and 55.0 respectively, up from the prior month’s 48.5 and little changed, respectively. Meanwhile, the composite PMI is expected to tick up to 54.3 for November from the prior month’s 54.1. The University of Michigan’s finalized reading of November consumer sentiment is expected to come in at 73.9 versus the prior reading of 73.0. Meanwhile, the University of Michigan’s finalized November readings for one-year and 5-10-year inflation expectations are forecasted to come in at 2.7% and 3.1%, respectively, up from the preliminary reading of 2.6% and little changed, respectively.
In the central bank space, Federal Reserve Governor Michelle Bowman is scheduled to speak today.
Mortgage rates were higher in the latest week. For the week ending November 21, the average 30-year fixed mortgage rate was up six basis points (0.06%) to 6.84%, versus 7.29% a year ago. The 15-year fixed mortgage rate increased three basis points (0.03%) to 6.02%, versus 6.67% a year ago.
Municipal Market Commentary
The Bloomberg 30-day visible supply fell $1.739 billion to $8.112 billion on Thursday—compared to the 12-month average of $11.106 billion.
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