This morning’s report from the Census Bureau revealed that Housing Starts fell 9.5% in April while March’s 19.4% spike was revised to a 19.8% spike. Analysts were only expecting a 2% decline for last month. Building Permits also missed estimates with a rise of 0.3% that was only half of the expected growth. March’s 2.7% rise was revised to just 1.7%.
Treasury prices were already firming up prior to today’s report and have continued to edge up slightly, although not enough to significantly change yields. The Long Bond is sitting at 2.35% with the Ten-Year yielding 1.63%. The Two-Year is still steady at 15 basis points. Crude oil is up slightly to $66.63 as gold continues its modest rally to $1,872. Equity futures indicate a positive opening.