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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   94-21 (-01.5)  
  FN 2.5% Coupon   102-22 (+02.5)  
  Support   1.257%  
  Resistance   0.793%  
  Wednesday, March 31, 2021

Treasury Yields and Tech Shares Rise with Bond Yields on Biden's Plan

Today's market opened sessions with treasuries lower across all maturities. The 10-Year Treasury yield is at 1.7119, 0.90 bp higher than prior closing of 1.7029.
US stocks rise as traders focus on technology shares before President Biden reveals his stimulus plan which includes a $2.25 trillion boost to infrastructure. Apple Inc. and Tesla Inc. led the tech-heavy Nasdaq 100 to see a 0.7% increase. In addition, the S&P 500 Index also increased for the first time in three trading sessions and the Stoxx Europe 600 extended its 13-month high by increasing 0.1%. Following last week’s incident with Archegos Capital Management, investors are turning their attention towards growth and inflation as the volatility caused by these forced sales calms down. ViacomCBS Inc. and Discovery Inc. continue to see losses as stocks at the center of the Archegos crisis edge lower. Europe continues to struggle with pandemic recovery as growth expectations are still unclear given the recent resurgence of coronavirus cases. In the US, however, the vaccine rollout is surpassing targets. Data for March shows that private employers have added the most amount of jobs in the past six months, adding further evidence that vaccinations and business openings encourage hiring. In terms of currencies, the Bloomberg Dollar Spot Index decreased 0.2% to $1.3787 and the Euro rose 0.1% to $1.1737. ADP data shows 10-Year Treasury yields rose for the fourth time in five days, trading near a 14-month high. The West Texas Intermediate crude decreased 0.5% to $60.48 a barrel meanwhile gold increased 0.3% to $1,695.46 an ounce. Some key events to watch this week include President Biden’s infrastructure plan on Wednesday, the OPEC+ meeting on Thursday to discuss May production levels, and the US employment report on Friday.
The curve has bear-steepened with UST 10-Year yield up 0.90 bp.
This Week's Events
  03/29 Dallas Fed Manf. Activity 07:30 Mar 16.80 28.90 17.20 -  
  03/30 S&P CoreLogic CS 20-City YoY NSA 06:00 Jan 11.20% 11.10% 10.10% 10.17%  
  03/30 S&P CoreLogic CS 20-City MoM SA 06:00 Jan 1.20% 1.20% 1.25% 1.30%  
  03/30 Conf. Board Consumer Confidence 07:00 Mar 96.90 109.70 91.30 90.40  
  03/31 MBA Mortgage Applications  04:00 26 Mar - -2.20% -2.50% -  
  04/01 Initial Jobless Claims 05:30 27 Mar 675k - 684k -  
  04/01 Continuing Claims 05:30 20 Mar 3750k - 3870k -  
  04/02 Average Hourly Earnings MoM 05:30 Mar 0.10% - 0.20% -  
  04/02 Average Hourly Earnings YoY 05:30 Mar 4.50% - 5.30% -  
  04/02 Change in Nonfarm Payrolls 05:30 Feb F 650k - 379k -  
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