|10-Year: +9/32....2.829%.... GNMAs: .... USD/JPY: 107.70.... EUR/USD: 1.2363|
-- Market respects narrow range ahead of Wednesday's release of January CPI (Briefing.com consensus 0.4%; prior 0.1%)
-- NFIB Small Business Optimism Index (actual 106.9; prior 104.9)
Pause Ahead of January CPI
- U.S. Treasuries ended a sleepy Tuesday session on a mostly higher note. The 2-yr note bucked the trend, inching lower throughout the day, while 5s, 10s, and 30s held modest gains into the close. Intraday movement was very limited, evidenced by the 10-yr yield, which bounced around a two-basis point range. Today's quiet trade preceded tomorrow's release of January CPI. The Briefing.com consensus expects a month-over-month increase of 0.4% to follow last month's 0.1% uptick.
- Yield Check:
- 2-yr: +2 bps to 2.09%
- 5-yr: -3 bps to 2.53%
- 10-yr: -3 bps to 2.83%
- 30-yr: -2 bps to 3.14%
- U.S. trade representative Robert Lighthizer said progress is being made in NAFTA talks, especially with Mexico. Canada's chief NAFTA negotiator Steve Verheul said that chapters on customs and telecommunications are close to being completed, but substantial differences remain on autos.
- The NFIB Small Business Optimism Index for January increased to 106.9 from 104.9 in December.
- WTI crude: -0.2% to $59.19/bbl
- Gold: +0.3% to $1329.80/ozt
- Copper: +2.3% to $3.16/lb
- EUR/USD: +0.6% to 1.2363
- USD/JPY: -0.9% to 107.70
- A Look to Wednesday:
- Weekly MBA Mortgage Index (prior 0.7%) at 7:00 ET
- January CPI (Briefing.com consensus 0.4%; prior 0.1%), Core CPI (Briefing.com consensus 0.2%; prior 0.3%), January Retail Sales (Briefing.com consensus 0.2%; prior 0.4%), and Retail Sales ex-auto (Briefing.com consensus 0.4%; prior 0.4%) at 8:30 ET
- December Business Inventories (Briefing.com consensus 0.3%; prior 0.4%) at 10:00 ET
- Weekly Crude Inventories (prior 1.9 mln) at 10:30 ET