Hope Springs Eternal

This morning’s Treasury sell-off along with a renewed rally in equities seems to be the result of improving outlooks amid expanding reopening efforts taking place nationwide. The early, quarter-point price slip in the Ten Year has pushed that yield up to around 71 basis points as the Treasury prepares to bring a new 20-year bond issue to market later today. Conflicting reports over the effectiveness of Moderna’s possible vaccine breakthrough was the source of some late-day volatility yesterday.

Earlier today, the Mortgage Bankers Association reported that its Mortgage Applications Index fell 2.6% for the week ending May 15th. New Purchases fell 6.4% after enjoying a 10.6% rise the week previous. Refinancings fell 6.3% on the heels of the prior week’s 3.3% decline. Later today, the minutes of the FOMC’s late-April meeting are scheduled for release and will surely be thoroughly examined for clues to the central bank’s intentions.

In the meantime, the rally in WTI continues with a barrel of crude currently going for about $32.75, a rise of just under a dollar. Gold appears to be little changed at around $1,746/ounce.