Morning Treasury Commentary – JenkinsRM

Morning Treasury Commentary

Treasuries traded in another tight range overnight despite a better PMI figure out of China. Selling occurred in the belly of the curve which slightly flattened 5/30yrs spread. In Europe, another quiet session as equities are up 0.5% while core fixed income is 1-2bps higher in yield. Most investors are awaiting the US Jobs report tomorrow morning. On tap today, we have Jobless Claims, Personal Income & Spending, Chicago PMI, and Pending Home Sales.

 

View: Still favor buying dips in 5s and selling 10s big picture after the Jobs figure however we should see a fairly heavy corporate calendar in September. That said, maturities of corporate debt are near the $300B mark this quarter which show allow for a decent bid to the market in the coming weeks.

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