|10-Year: +4/32....%.... GNMAs: .... USD/JPY: 108.28.... EUR/USD: 1.1527|
-- Treasuries look to carve out short-term bottom after four days of sideways action
-- 8:30 ET: December CPI (actual -0.1%; Briefing.com consensus -0.1%; prior 0.0%) and core CPI (actual 0.2%; Briefing.com consensus 0.2%; prior 0.2%)
-- 14:00 ET: December Treasury Budget (prior -$23.20 billion)
- U.S. Treasuries are on track for a higher start after enjoying a steady climb in the overnight futures market. Treasury futures began trudging higher shortly after yesterday's cash close, continuing their advance until the start of the European session. The market has seen some backtracking over the past three hours, but futures remain closer to their highs than their overnight lows. It was reported overnight that the Chinese communist party will set its 2019 GDP growth target between 6.0% and 6.5%, down from the 2018 target of 6.5%. In Europe, The Evening Standard reported that the Brexit withdrawal date (March 29) is increasingly likely to be delayed due to a backlog of bills that must be passed before the separation. Industrial production in the UK, Italy, and Spain decreased in November, mimicking the declines seen in France and Germany. Today's session will feature the release of the December CPI report (Briefing.com consensus -0.1%) at 8:30 ET.
- Yield Check:
- 2-yr: -3 bps to 2.54%
- 3-yr: -2 bps to 2.52%
- 5-yr: -3 bps to 2.53%
- 10-yr: -2 bps to 2.71%
- 30-yr: -1 bp to 3.04%
- The New York Times reported that a Chinese employee of Huawei and a Polish national were arrested in Poland on espionage charges.
- The next meeting between North Korea's Chairman Kim and President Trump could take place during the second week of February, according to Korean press.
- Japan's November Household Spending +1.1% month-over-month (expected 0.2%; last 1.8%); -0.6% year-over-year (expected 0.0%; last -0.3%). November Current Account surplus JPY1.44 trillion (expected surplus JPY1.10 trillion; last surplus JPY1.21 trillion). December Bank Lending +2.4% year-over-year (expected 2.1%; last 2.1%). December Economy Watchers Current Index 48.0 (expected 50.5; last 51.0)
- Australia's December AIG Construction Index 42.6 (last 44.5) and November Retail Sales +0.4% month-over-month (expected 0.3%; last 0.3%)
- UK's November Industrial Production -0.4% month-over-month (expected 0.3%; last -0.5%); -1.5% year-over-year (expected -0.7%; last -0.9%). November Manufacturing Production -0.3% month-over-month (expected 0.4%; last -0.6%); -1.1% year-over-year (expected -0.7%; last -0.7%).
- Italy's November Industrial Production -1.6% month-over-month (expected -0.3%; last -0.1%); -2.6% year-over-year (expected 0.2%; last 1.0%)
- Spain's November Industrial Production -2.6% year-over-year (last 0.7%)
- WTI Crude: +0.3% to $52.73/bbl
- Gold: +0.4% to $1292.50/ozt
- Copper: +0.5% to $2.65/lb
- EUR/USD: +0.3% to 1.1527
- GBP/USD: +0.5% to 1.2808
- USD/CNH: -0.4% to 6.7674
- USD/JPY: -0.1% to 108.28
- Data out Today:
- 8:30 ET: December CPI (Briefing.com consensus -0.1%; prior 0.0%) and core CPI (Briefing.com consensus 0.2%; prior 0.2%)
- 14:00 ET: December Treasury Budget (prior -$23.20 billion)