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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-08 (-11)  
  FN 2.5% Coupon   105-12 (-03)  
  Support   0.791%  
  Resistance   0.615%  
  Tuesday, January 5, 2021

Treasury Yields Rise Ahead of Georgia Election

Market opened today's session with treasuries lower across all maturities. 10-Year Treasury yield is at 0.9382, 2.50 bps increased from prior closing of 0.9132.
US stocks opened higher this morning ahead of the Georgia elections which will decide the fate of the senate, and as a result, President-elect Joe Biden's agenda as well. Notable movers include Apple Inc., which saw shares climb following a price target increase by Credit Suisse Group AG, citing higher demand for iPhone 12 devices. China Mobile Ltd., China Telecom Corp. and China Unicom Hong Kong Ltd. all saw rallies as the New York Stock Exchange backtracked plans to delist the China-based companies. Georgia's runoff election continues to be pivotal as seen in yesterday's market sell-off, with more stimulus aid and higher taxes to be expected under a Democrat-led senate. Elsewhere, OPEC+ will meet again today after failing to reach a resolution yesterday on whether or not oil output should be increased. WTI crude increased by 2.4% towards $48.74 a barrel while Gold rose by 0.4%. On the economic front, ISM Manufacturing beat expectations after reporting at 60.70 for the month of December. Marking the largest increase in new orders since 2011, today's manufacturing figure was boosted through longer lead times and supply chain limitations caused by coronavirus lockdowns.
The curve has bear-steepened with UST 10-Year yield up 2.50 bps.
This Week's Events
  01/04 Markit US Manufacturing PMI 06:45 Dec F 56.30 57.10 56.50 -  
  01/04 Construction Spending MoM 07:00 Nov 1.00% 0.90% 1.30% 1.60%  
  01/05 ISM Prices Paid 07:00 Dec 66.00 77.60 65.40 -  
  01/06 MBA Mortgage Applications 04:00 1 Jan - - 0.80% -  
  01/06 ADP Employment Change 05:15 Dec 63k - 307k -  
  01/06 Markit US Services PMI 06:45 Dec F 55.20 - 55.30 -  
  01/06 Markit US Composite PMI 06:45 Dec F - - 55.70 -  
  01/06 Factory Orders 07:00 Nov 0.70% - 1.00% -  
  01/06 Durable Goods Orders 07:00 Nov F 0.90% - 0.90% -  
  01/06 Durables Ex Transportation 07:00 Nov F 0.40% - 0.40% -  
  01/07 Initial Jobless Claims 05:30 2 Jan 800k - 787k -  
  01/07 Continuing Claims 05:30 26 Dec 5150k - 5219k -  
  01/07 Bloomberg Consumer Comfort 06:45 3 Jan - - 44.60 -  
  01/08 Average Hourly Earnings MoM 05:30 Dec 0.20% - 0.30% -  
  01/08 Average Hourly Earnings YoY 05:30 Dec 4.50% - 4.40% -  
  01/08 Change in Nonfarm Payrolls 05:30 Dec 62k - 245k -
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