Solutions

Market Commentary

U.S. Treasuries sold-off while equities were mixed as earnings season continues. Treasuries retreated overnight and further extended their losses after the release of the March durable goods orders report. Yields dipped briefly but quickly rebounded after the $70B five-year note auction was met with weak demand. Yields edged lower in the afternoon with yields across the curve finishing 1 to 5 bps higher.

MBA Mortgage Bankers Association (MBA) mortgage applications fell 2.7% during the week ending April 19, after rising 3.3% in the week prior. The conventional 30-year fixed mortgage rate increased 11 bps to 7.24% as purchase and refinance activity slowed. The purchase index declined 1.0% while the refinance index decreased 5.6% week-over-week.

Durable goods orders increased 2.6% in March to $238.4B, following February’s downwardly revised 0.7% increase. New orders for transportation increased sharply, rising 7.7% driven by a rise in nondefense aircrafts and parts. Excluding transportation, new orders rose 0.2% month-over-month.

The data and valuations provided in this document are for information purposes only and are provided as an accommodation and without charge. The Federal Home Loan Bank of Chicago makes no representations or warranties about the accuracy or suitability of any information in this document. This document is not intended to constitute legal, investment, or financial advice or the rendering of legal, consulting, or other professional services of any kind.