Reply To: Traders Market Weekly: Fear and Greed in Las Vegas.

#73938
Truman
Participant

Preliminary S&P Global U.S. Manufacturing PMI for April dropped to 49.9 from 51.9 in March while the preliminary S&P Global U.S. Services PMI fell to 50.9 from 51.7 in March.

The softer reads helped push Treasury yields lower.

The 2-yr note yield, which hit 5.00% earlier, is down one basis point to 4.96%, and the 10-yr note yield, which climbed to 4.65% earlier, is down two basis points to 4.60%.

Treasuries are holding near their rebound highs even though the just-released New Home Sales report for March (actual 693,000; consensus 670,000) beat expectations. Equities are off to a higher start with the Nasdaq (+1.1%) showing relative strength.

New home sales increased 8.8% month-over-month in March to a seasonally adjusted annual rate of 693,000 units (consensus 670,000) from a downwardly revised 637,000 (from 662,000) in February. On a year-over-year basis, new home sales were up 8.3%.

The key takeaway from the report is that new home sales were up in every region, helped in part by another dip in the median sales price, although average prices were up with a pickup in sales of higher-priced homes, particularly in the West region.

Yield:

2-yr: -5 bps to 4.92%
3-yr: -6 bps to 4.75%
5-yr: -5 bps to 4.61%
10-yr: -5 bps to 4.58%
30-yr: -2 bps to 4.70%