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Bond Market Update

  • The Market at 15:33 ET

    10-Year: +2/32…2.42…EUR/USD: 1.0570USD/JPY: 113.14

    Treasury Market Stands Its Ground

    • MBA Mortgage Index for the week ending 2/18: Actual -2.0% w/w, Prior -3.7%
    • January Existing Home Sales: Actual 5.69M, consensus 5.57M, Prior 5.49M
    • U.S. Treasury sells $13 bln of 2-year floating rate notes: Discount margin 0.133%, Bid-to-cover 3.08, Indirect bid 48.7%, Direct bid 0.4%
    • $34 bln 5-year Treasury auction: High yield 1.937%, Bid-to-cover 2.29, Indirect bid 58.2%, Direct bid: 8.4%, Tail 0.6 basis points
    • Fed Governor Powell (FOMC voter): Expects gradual rate hikes; Fed close to twin goals on employment and inflation; risks to U.S. economy are more in balance; asked if March FOMC meeting is live, he said yes and that he believes a hike will come very soon if the economy stays on track
    • FOMC Minutes from 1/31-2/1 meeting: Many Fed officials see hike fairly soon