Ten-Year Note Auction Attracts Above Average Demand
The Treasury Department continued this week’s series of announcements of the results of its long-term securities auctions on Wednesday, revealing this month’s auction of $35 billion worth of ten-year notes attracted above average demand.
The ten-year note auction drew a high yield of 2.755 percent and a bid-to-cover ratio of 2.53.
Last month, the Treasury sold $33 billion worth of ten-year notes, drawing a high yield of 2.960 percent and a bid-to-cover ratio of 2.34.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
The ten previous ten-year note auctions had an average bid-to-cover ratio of 2.47.
On Tuesday, the Treasury revealed this month’s auction of $42 billion worth of three-year notes also attracted above average demand.
The Treasury is due to finish off this week’s series of announcements of the results of its long-term securities auctions by revealing the results of this month’s auction of $21 billion worth of thirty-year bonds on Thursday.
European Economics Preview: Bank Of England Monetary Policy Decision Due
The monetary policy announcement from the Bank of England is due on Thursday, headlining a light day for the European economic news.
The BoE is expected to raise its benchmark rate by 50 basis points to 1.75 percent, combat high inflation and the cost of living crisis. The bank is scheduled to issue the monetary policy summary and the minutes to the monetary policy committee meeting at 7.00 am ET.
Other statistical reports for the day are as follows
At 2.00 am ET, Destatis is slated to issue Germany’s factory orders for June. Economists forecast orders to fall 0.8 percent on month, reversing a 0.1 percent rise in May.
At 3.30 am ET, S&P Global releases Germany’s construction Purchasing Managers’ survey data for July.
At 4.30 am ET, UK S&P/CIPS construction PMI data is due. The index is forecast to fall to 52.0 in July from 52.6 in June.
At 8.30 am ET, Czech National Bank announces its interest rate decision. The bank is set to hold its key rate at 7.00 percent.
Gold Futures Settle Higher As Dollar Slides After Soft Inflation Data
Gold futures settled higher on Wednesday as the dollar slid after data showed U.S. consumer price inflation for the month of July came in flat, raising speculation that the Federal Reserve will be less aggressive with its policy at the upcoming meeting in September.
The dollar index dropped to a low of 104.64 and despite recovering to 105.02, remains deep down in negative territory with a loss of about 1.25%.
Gold futures for December ended higher by $1.40 or about 0.1% at $1,813.70 an ounce.
Silver futures for September closed higher by $0.260 or about 1.2% at $20.742 an ounce, while Copper futures for September settled at $3.6495 per pound, gaining $0.0640 or about 1.2%.
Data from the Labor Department said the consumer price index was unchanged in July after jumping by 1.3% a month earlier. Economists had expected prices to edge up by 0.2%.
The data also said core consumer prices, excluding food and energy prices, rose by 0.3% in July, as against expectations for a 0.5% increase. The annual rate of core consumer price growth was unchanged at 5.9%, while economists had expected an acceleration to 6.1%.
The tamer than expected inflation data has led to speculation that the Federal Reserve will slow the pace of interest rate hikes at its September meeting.
CME Group’s FedWatch tool is currently indicating a 58.5% chance of a 50 basis point rate hike and a 41.5% chance of a 75 basis point rate hike.
European Economics Preview: Germany Final Inflation Data Due
Final consumer price data from Germany is due on Wednesday, headlining a light day for the European economic news.
At 2.00 am ET, Destatis is slated to issue Germany’s final consumer and harmonized index of consumer prices for July. According to flash estimate, consumer price inflation eased slightly to 7.5 percent from 7.6 percent in June. The statistical office is set to confirm preliminary estimates.
In the meantime, Statistics Sweden releases industrial production and new orders for June. Also, consumer and producer prices are due from Norway.
At 3.00 am ET, the Czech Statistical Office is set to issue consumer prices for July. Inflation is forecast to advance to 17.6 percent from 17.2 percent a month ago.
Also, unemployment from Turkey and industrial output from Slovakia are due.
At 4.00 am ET, Italy’s Istat is set to issue final inflation data for July. The consumer price index is expected to climb 7.9 percent annually, in line with flash estimate.
Zooey Deschanel Signs With Entertainment 360
EXCLUSIVE: Zooey Deschanel has inked with Entertainment 360.
She recently finished production on Carlos Saldanha’s Harold and the Purple Crayon as well as Bill Pohlad’s Dreamin’ Wild.
Deschanel is best known for her sitcom New Girl, which ran eight seasons and continues to be a big hit in syndication and streamer circuits. On the film side, her other popular credits include 500 Days of Summer, Yes Man and Elf. She is also an accomplished musician and songwriter, releasing music and touring with musical partner M. Ward as duo She and Him.
She also is repped by CAA and attorney Steve Warren.