U.S. Housing Sector Shows Signs of Growth

 

Treasury yields range-bound yesterday as impeachment overshadows trade. Later today, the House will debate and vote on the two articles of impeachment filed against President Donald Trump. Democrats currently hold a 233-197 majority in the House and are expected to impeach the President later this evening- an event long priced in by markets. Once the House votes to impeach, the proceedings will move to the more evenly divided Senate for a trial in January. President Trump sent a letter to House Speaker Nancy Pelosi in response to the proceedings, calling the impeachment efforts an “illegal, partisan attempted coup.” The political wagering site PredictIt currently prices in a 95% likelihood of impeachment, but only a 10% likelihood of a Senate conviction. US Treasurys were little changed in response, the 10-year yield rising marginally to 1.88%.

 

 

The U.S. housing sector signaled signs of growth as the construction of new homes increased in November. The Commerce Department released data that indicated that U.S. home-building increased by 3.2% between October and November. Residential permits rose 1.4% as well. A gauge of home-builder confidence released by the National Association of Homebuilders also reached its highest level in 20 years this past month.

 

 

Day ahead.Chicago Fed President Charles Evans and Fed Board of Governers member Lael Brainard are scheduled to speak. Oil and related stockpile numbers will be released at 10:30 AM. This data release comes as optimism grows around the commodity which has supported by the OPEC output cut and the limited trade deal.