|10-Year: +3/32....%.... GNMAs: .... USD/JPY: 105.72.... EUR/USD: 1.1202|
-- Trump administration reportedly delaying issuance of permits that will allow U.S. companies to resume doing business with Huawei
-- Italy appears to be headed for another general election
-- 8:30 ET: July PPI (actual 0.2%; Briefing.com consensus 0.2%; prior 0.1%) and core PPI (actual -0.1%; Briefing.com consensus 0.2%; prior 0.3%)
- The index for final demand increased 0.2% m/m in July (Briefing.com consensus +0.2%) while the index for final demand, excluding food and energy, decreased 0.1% m/m (Briefing.com consensus +0.2%).
- Those readings left the index for final demand up 1.7% yr/yr, unchanged from June. The index remains at its lowest level since January 2017. Core PPI was up 2.1% yr/yr, down from 2.3% in June.
- The key takeaway from the report is that inflationary pressure remains muted.
- The index for final demand services decreased 0.1% in July after five consecutive monthly increases.
- Prices for final demand goods increased 0.4% in July, due to a 2.3% increase in the index for final demand energy.
- The index for processed goods for intermediate demand increased 0.2% in July.
- The index for unprocessed goods for intermediate demand increased 1.6% in July.
- Yield Check:
- 2-yr: -1 bp to 1.60%
- 3-yr: -1 bp to 1.53%
- 5-yr: -1 bp to 1.53%
- 10-yr: -1 bp to 1.70%
- 30-yr: -1 bp to 2.22%