Both Import and Export prices decreased in May

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Published Date 6/14/2024

Rates began flat this morning after another session that dropped the 10 year note another 8 bps yesterday to 4.24%. The note did slip in overnight activity to 4.20% the lowest level since the beginning of April. Inflation cooling in both May CPI and PPI, weekly jobless claims increased yesterday more than estimates. Markets also impressed with the vey strong 10 year and 30 year auctions, both saw very strong demand, especially from foreign banks and large foreign investors driven by turmoil in France, he called for a snap election after Marine Le Pen’s win for the EU parliament.

At 8:30 am ET more good news on May imports and export prices. Imports expected to be unchanged from April’s +0.9% increase but declined 0.3% month/month, year/year thought to be +1.5% increased just 1.1%. Export prices forecast at 0.0% declined 0.6% and year/year +0.6% from +1.0% in April. Import prices declined for the first time this year; prices for non-fuel imports fell by 0.3% amid lower costs for foods, feeds, and beverages (-1.3%), industrial supplies and materials (-0.4%), and consumer goods (-0.2%). Export prices the lowest since last December.

The G-7 meeting began yesterday in Italy continuing today and over the weekend. Based on the schedule there isn’t anything in the meeting that will directly influence markets.

At 9:30 am the DJIA opened -176, NASDAQ -58, S&P -20. 10 year at 9:30 am 4.23% -2 bps. FNMA 6.0 30 year coupon at 9:30 am -2 bps from yesterday’s close and -6 bps from 9:30 am yesterday.

At 10 am the University of Michigan mid-month consumer sentiment index, the index was expected to have increased to 73.0 from 69.1 at the end of May, year ahead inflation at 3.2% down from 3.3%. The sentiment index dropped to 65.6.

Source: TBWS

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