Thursday, December 12, 2013
6:53 PMU.S. House overwhelmingly passes two-year budget deal
- The U.S. House overwhelmingly approves (332-94) a two-year budget framework spearheaded by Paul Ryan and Patty Murray that would remove the threat of a shutdown during the period. The eye-to-eye across the aisle comes as somewhat of a surprise and a rarity amid the rancor that has gripped budget battles in the past 2 years.
- John Boehner noted that the measure amounted to a small step toward the GOP's goal of deficit reduction: "Is it perfect? Does it go far enough? No, not at all," he said, while urging colleagues to support the plan. Democrat Chris Van Hollen: a "small positive step forward."
- The deal now goes to a Democratic Senate, which is expected to sign off as early as next week.
- Treasury ETFs: TBT, TLT, TIP, TMV, SHY, IEF, TBF, PST, EDV, TTT, TMF, VTIP, IPE, TLH, ZROZ, SBND, IEI, SCHP, DLBS, TYO, LTPZ, DTYS, STPZ, VGLT, TIPZ, UST, BIL, SHV, STIP, PLW, GOVT, UBT, TBX, TLO, VGSH, VGIT, RINF, DTYL, GSY, LBND, SCHR, TYD, SCHO, ITE, TYBS, TPS, TRSY, TENZ, INFL, SST, DTUL, TDTT, TUZ, FIVZ, DTUS, TBZ, FINF, DFVL, UINF, DEFL, DLBL, DFVS, TDTF, TIPX, TYNS, SINF
10:06 AMMortgage rates drop slightly in Freddie Mac survey
- The average rate for a 30-year fixed-rate mortgage slipped to 4.42% from 4.46% in the latest Freddie Mac weekly survey, while the average 15-year fixed rate fell to 3.43% from 3.47% in the prior week.
- A year ago, the respective rates were 3.32% and 2.66%.
9:45 AMConsumer Comfort Index continues post-shutdown bounce
- The Bloomberg Consumer Comfort Index edges higher to -30.9 from -31.3 last week. The CCI has now gained a full 7 points from its post-government shutdown low in early November - maybe heralding good things for the holiday shopping season. It remains, however, far below its long-term average of around 16.
8:40 AMTreasury yields higher after strong retail sales report
- Treasury prices are paying attention to the big retail sales beat, not the massive jump in initial jobless claims. Down to 2.84% earlier, the 10-year yield is now ahead two basis points on the session to 2.87%. Stock index futures remain marginally lower.
- The jobless claims data (they plunged to 298K last week only to soar to 368K today) clearly reflect seasonal adjustment issues surrounding the holiday season.
- Treasury ETFs: TBT, TLT, TMV, IEF, TBF, PST, EDV, TTT, TMF, TLH, ZROZ, SBND, IEI, DLBS, TYO, DTYS, VGLT, UST, UBT, TBX, TLO, VGIT, LBND, GSY, DTYL, SCHR, TYD, ITE, TYBS, TENZ, FIVZ, TBZ, DFVL, DLBL, DFVS, TYNS
2:44 AMHouse seen approving budget deal
- The House is today expected to pass a bipartisan but narrow two-year budget deal that Congressional leaders reached earlier this week despite opposition from right-wing groups, with even some of the more conservative Republicans lining up behind the agreement.
- However, the GOP-controlled Rules Committee didn't let Democrats include an amendment to extend federal unemployment benefits that are set to expire on December 28.
- Should the chamber approve the deal, the Senate is seen passing it next week.