Major market averages traded to the downside to kick off the week on Monday.
Early on and the Nasdaq Composite (COMP.IND) was flat, the S&P 500 (SP500) was -0.1%, and the Dow (DJI) was -0.1%.
The 10-year Treasury yield (US10Y) fell 3 basis points to 4.44%. The 2-year yield (US2Y) fell 2 basis points to 4.93%.
“This week has a few data points that will sharpen the forecasts further for economists especially in the US where the personal income and spending data (Thursday) will include the all important core PCE which is of course the Fed’s preferred measure of inflation,” Deutsche Bank’s Jim Reid said. “Elsewhere in the US the highlights are the second reading of Q3 GDP on Wednesday, the ISM manufacturing and Auto Sales (Friday), and Chicago PMI (Thursday).”
“There’s also a 2 and 5yr auction today and a 7yr equivalent tomorrow. Supply has been a big mover in recent weeks in both directions so although this is relatively short duration it will give some idea of demand, something that will be consistently needed over the next few months and quarters.”
New home sales figures for October arrived shortly. New home sales fell 5.6% M/M to 679K versus the expected figure of 721K.
“The US economy is less interest rate sensitive, but the US housing market shows the effects of Federal Reserve policy tightening,” UBS’s Paul Donovan said.