Morning Market Update: April 24, 2018
Treasurys Continue Sell Off in Choppy Trading
Commentary for Monday: Treasury yields mostly increased while equities fell in volatile trading. Yields were initially choppy but pushed higher from the session's lowest level in the morning following mixed economic data that reported worsening U.S. economic activity but a jump in existing home sales. Yields were little changed ahead of the afternoon after two Treasury auctions prior to stabilizing at close slightly higher on the day.
This Morning: Yields are trending higher ahead of the release of housing economic data.
The Chicago Fed National Activity Index fell sharply from 0.88 to 0.10 in March. Three of the four components that make up the index fell from the prior month, while two of the four posted monthly positive contributions. Following last month's unexpected decline, the 3-month moving average edged lower from 0.31 in February to 0.27 in March.
Existing home sales were mostly in-line with expectations in March, rising 1.1% to an annual rate of 5.6M. The increase was mostly driven by existing condo sales jumping 5.2% month-over-month. Single-family home sales rose a modest 0.6% from one month ago but are 1.0% below March 2017's level. By region, sales increased 6.3% in the Northeast and 5.7% in the Midwest, while declining 0.4% in the South and 3.1% in the West. Total housing inventory grew 5.7% from the prior month but is down 7.2% on a year-over-year basis.
Financial Markets Research
The morning market update is provided by:
Director, Member Strategy and Solutions
Associate Director, Member Strategy and Solutions