July 15, 2024
Over in bond land, Treasury yields are mostly higher before the opening bell Monday as investors consider the implications of the attempted assassination of former U.S. President Donald Trump, while also looking forward to comments from Federal Reserve (Fed) Chair Jerome Powell, who is scheduled to be interviewed today. The yield on the 10-year note is rising four basis points (0.04%) to 4.22%, while the 30-year bond yield is increasing six basis points (0.06%) to 4.46%. The yield on the two-year note, which is more sensitive to changes in monetary policy, is unchanged at 4.45%.
Treasury yields were lower on Friday, as investors digested June’s Producer Price Index (PPI) data, which came in hotter than expectations. The yield on the 10-year note was down three basis points (0.03%) to 4.18%, while the 30-year bond yield fell two basis points (0.02%) to 4.40%. The yield on the two-year note decreased six basis points (0.06%) to 4.45%.
On the data front Friday, June’s PPI for final demand increased 0.2% month-over-month (MoM), versus the prior month’s revised zero growth, and increased 2.6% year-over-year (YoY) versus the prior month’s revised rise of 2.4%. Core PPI, which excludes the more volatile food and energy components, increased 0.4% MoM, versus the prior month’s revised 0.3%, and increased 3.0% YoY versus the prior month’s revised increase of 2.6%. The preliminary reading of the University of Michigan Consumer Sentiment Index recorded 66.0 for July, down from the prior month’s reading of 68.2. Meanwhile, July’s preliminary readings for the University of Michigan’s one- and 5-10-year inflation expectations both recorded 2.9%, both down from the prior month’s readings of 3.0%.
In the auction space, the U.S. Treasury is set to issue $76 billion in 13-week bills and $70 billion in 26-week bills.
In the central bank space, Fed Chair Jerome Powell is scheduled to be interviewed at the Economic Club of Washington DC today, while San Francisco Fed President Mary Daly is scheduled to speak about the U.S. economy.
Mortgage rates were lower in the latest week. For the week ending July 11, the average 30-year fixed mortgage rate was down six basis points (0.06%) at 6.89%, versus 6.96% a year ago. The 15-year fixed mortgage rate decreased eight basis points (0.08%) to 6.17%, versus 6.30% a year ago.
Municipal Market Commentary
None at this time.
This information is obtained from sources and data considered to be reliable, but its accuracy and completeness is not guaranteed by Wells Fargo Advisors. Additional information available by request.
Wells Fargo Advisors is registered with the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, but is not licensed or registered with any financial services regulatory authority outside of the U.S. Non-U.S. residents who maintain U.S.-based financial services account(s) with Wells Fargo Advisors may not be afforded certain protections conferred by legislation and regulations in their country of residence in respect of any investments, investment transactions or communications made with Wells Fargo Advisors.
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.