With no data scheduled for release until later this morning, Treasury and equity markets are both starting the week trying to regain some lost ground. In early trading, Ten-Year Treasuries are up about a quarter-point and that has pushed the yield down to around 84 basis points while the Long Bond’s half-point price gain puts that yield at 1.64%. The Two-Year is little changed at 15 basis points. Crude oil can’t catch a break and concerns over more supply have pushed the price down a little further today to about $35.36. Gold is up about $11 to $1,891 and DJIA futures are looking for a triple-digit green opening.
Later this morning, Markit U.S. will release its October Manufacturing PMI and that’s expected to be unchanged at 53.3. A similar report from the Institute of Supply Management should show a slight improvement over its September level. The Census Bureau is also expected to report that Construction Spending rose by 1% in September, a little slower than the prior month’s 1.4% growth. The FOMC meets Wednesday and Thursday.
