05/23/2025
Bond pricing is slightly improved in early trading as treasury yields inch lower. The U.S. 10-Year Treasury yield is currently 4.487%, below the opening levels near 4.531%. Trump has reignited tariff plans on the European Union after negotiations have stalled as well as a levy on Apple for iPhones made outside the United States. Investors in turn are looking for safe haven investments, however, bonds have been under pressure this week amidst Trump’s budget bill which was perceived to add to the U.S. deficit mixed with Moody’s downgrade of U.S. debt. New home sales is due out at 10 a.m. ET and is the final release for the week. Economists are forecasting a drop to 695,000 annualized units from 724,000 in March. The surge in March was largely seen as rates and borrowing costs fell. We have an early market close today followed by a full market closure Monday in honor of Memorial Day. Fed minutes, GDP and PCE data are scheduled for the latter part of next week. Mortgage rates will likely print flat to slightly better this morning all else constant.
