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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   97-11 (+04)  
  FN 2.5% Coupon   103-28.5 (+01.5)  
  Support   1.182%  
  Resistance   0.844%  
  Tuesday, March 2, 2021

Treasury Yields Fall as Tech Companies Resume Decline

Market opened today's session with treasuries higher across all maturities. 10-Year Treasury yield is at 1.4051, 1.19 bps decreased from prior closing of 1.4170.
US stocks opened mixed this morning as tech companies once again put a drag on markets. Notable early movers include Zoom Video Communications and Target Corp., with the former climbing on a strong revenue forecast, and the latter climbing on a Q4 performance beat. Notably, large tech companies, such as Apple Inc., Microsoft Corp., and Tesla Inc. noted losses of at least 1.1% this morning. In regard to global markets, China Banking and Insurance Regulatory Commission Chair Guo Shuqinp reinforced a cautionary tone on US and European markets, pointing towards a disconnect between asset prices and underlying economies. Elsewhere, WTI crude noted a 0.1% increase towards $60.71 a barrel, all the while, Gold remained relatively unchanged at about $1,724.62 an ounce. On the economic front, reporting later today is US Auto Sales for the month of February, with consensus expectations set at 16 million, annualized sales. Recent cold weather in Texas is expected to take a toll on sales this month, all the while microchip related shortages are expected to limit inventories as well. Alternatively, increased vaccinations and further stimulus available as of January can potentially further spur an underlying demand for vehicles going forward. Reporting tomorrow are MBA Mortgage Applications and ADP Employment Change, the latter expected at 200K.
The curve has bull-flattened with UST 10-Year yield down 1.19 bps.
This Week's Events
  03/01 Markit US Manufacturing PMI 06:45 Feb F 58.50 58.60 58.50 -  
  03/01 Construction Spending MoM 07:00 Jan 0.80% 1.70% 1.00% 1.10%  
  03/01 ISM Prices Paid 07:00 Feb 80.00 86.00 82.10 -  
  03/03 MBA Mortgage Applications 04:00 26 Feb - - -11.40% -  
  03/03 ADP Employment Change 05:15 Feb 200k - 174k -  
  03/03 Markit US Services PMI 06:45 Feb F 58.90 - 58.90 -  
  03/03 Markit US Composite PMI 06:45 Feb F - - 58.80 -  
  03/04 Initial Jobless Claims 05:30 27 Feb 755k - 730k -  
  03/04 Continuing Claims 05:30 20 Feb 4300k - 4419k -  
  03/04 Factory Orders 07:00 Jan 2.10% - 1.10% -  
  03/04 Durable Goods Orders 07:00 Jan F 3.40% - 3.40% -  
  03/04 Durables Ex Transportation 07:00 Jan F 1.40% - 1.40% -  
  03/05 Average Hourly Earnings MoM 05:30 Feb 0.20% - 0.20% -  
  03/05 Average Hourly Earnings YoY 05:30 Feb 5.30% - 5.40% -  
  03/05 Change in Nonfarm Payrolls 05:30 Feb 195k - 49k -
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