Treasuries Weaker to Start the Day

Treasury prices are starting off slightly lower in early trading. Earlier this morning, the Mortgage Bankers Association announced that for the week ending April 9th, Mortgage Application fell another 3.7% after the prior week’s 5.1% decline. Purchase applications were down 1.4% with Refis down 5%. The Average Thirty-Year fixed rate was 3.27%.

From the Bureau of Labor Statistics, we learned that Import Prices rose 1.2% last month versus an estimate of 0.9%. That helped push the year-over-year rate to 6.9% from 3.1%. Analysts were expecting a big jump in the twelve-month rate, but only to 6.4%. Export Prices jumped 2.1% against a forecast of just 1% moving the year-over-year rate to 9.1% from 5.3%. Changing base effects have helped produce these startling year-over-year results as they have similarly affected other price-level measures.

Treasury prices are showing little reaction to this morning’s numbers with the Long Bond yielding 2.31%, the Ten-Year yielding 1.63%, and the Two-Year unchanged at 16 basis points. Crude oil is up almost a dollar to $61.14 with gold little changed at $1,745. Equity futures are mixed.