Trade Deficit Widens to $105.6 Billion; 10-Year Yield at 5.27%
The U.S. trade deficit for August was $105.6 billion vs a $102 billion estimate on Oct. 6; the 10-year yield stood at 5.27% and the VIX at 15.01.
The U.S. trade deficit widened in August, according to data released on Tuesday, Oct. 6. The balance of trade came in at -$105.6 billion, compared with an estimate of -$102 billion and -$92.8 billion in the prior month. Imports totaled $420.8 billion against a $416.8 billion estimate, while exports were $315.2 billion versus $314.6 billion expected.
Treasury yields stood at 5.27% for the 10-year note and 4.79% for the 2-year, according to FRED, leaving the 10-year/2-year spread at 0.48 percentage point. The effective federal funds rate held at 3.88%. A Fox Business segment was titled “Treasury yields PULL BACK from historic highs.” At the 3-year note auction, the high yield was 4.93%, compared with 4.47% at the previous sale.
Volatility and credit measures were steady. The VIX closed at 15.01, and the high-yield option-adjusted spread was 3.03%. The Fed's broad dollar index stood at 120.90, and the UUP dollar fund fell 0.31% to 28.90.
Among other releases, the economic optimism index for October rose to 46.8, above a 44.5 estimate and a prior reading of 45.6. The logistics managers index for September was 70.2, up from 66.6. Redbook same-store sales rose 8.6% year over year in the week to Oct. 3, compared with 8.2% the week before.
After the close, the API reported a crude oil inventory change of -2.09 million for the week to Oct. 2, versus 1.019 million previously. Reuters, separately, reported “Former star US bond manager Leech fined by SEC, following guilty plea in 'cherry-picking' case.”
Data
| Release | Actual | Estimate | Previous |
|---|---|---|---|
| Balance of Trade (Aug) | -105.6 B | -102 B | -92.8 B |
| Imports (Aug) | 420.8 B | 416.8 B | 403.6 B |
| Exports (Aug) | 315.2 B | 314.6 B | 310.7 B |
| Economic Optimism Index (Oct) | 46.8 | 44.5 | 45.6 |
| LMI Logistics Managers Index (Sep) | 70.2 | n/a | 66.6 |
| 3-Year Note Auction | 4.932% | n/a | 4.474% |
Data: FMP, FRED. Figures are close-to-close unless stated.
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