morning 7-30

Calendar:
Busy week for Central banks with BOJ decision tomorrow, The Fed on Wednesday, Bank of England on Thursday, and Mexican central bank meets on Thursday as well. The probability of A rate hike for bank of England stands at 75%.The BOJ may indicate more flexibility in their Bond buying program but adjustments are minor, Both Fed and Mexico expected to leave rates unchanged. Caterpillar earnings this morning better than expected they boosted outlook and announced a $10B share repurchase agreement, Stock +3% pre market, pushing the Dow into the green .Earnings continue to roll in this week, Apple reports tomorrow. Economic calendar heats up as well as it turn to August, Employment cost index tomorrow, ISM on Wednesday and of course payroll data on Friday. From China Manufacturing PMI both Official and private reading will be released tonight through Wednesday/
Markets relatively quiet so far today, Spoos unchanged but trading near session highs, European Stock markets either side of unchanged Crude oil though +2% and Counterpart Brent only +.8%.Worries about immediate supply pushing up front Month CL vs back end of curve.US 2s10 yield curve steeper today after 4 consecutive days of flattening. The Treasury will announce on August 1 the funding program for next 3 months and Bloomberg saying that issuance will rise for third consecutive quarter. Grains trading higher this morning. Bunds and gilts heavy and weighing on treasuries, 30 year JGBs closed with yields higher by 1.7 Bps. Still watching 3% for US 10 year yield.

President trump tweet:
@realDonaldTrump
I would be willing to “shut down” government if the Democrats do not give us the votes for Border Security, which includes the Wall! Must get rid of Lottery, Catch, & Release etc. and finally go to system of Immigration based on MERIT! We need great people coming into our Country!

 

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