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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   1.595%  
  Support   1.449%  
  Resistance   0.798%  
  FN 2.5% Coupon   103.48 (-0.05)  
  Tuesday, April 27, 2021

Treasury Yields Rose as Tech Shares Struggled

Market opened today's session with treasuries selling-off across all maturities. 10-Year Treasury yield is at 1.5880, 2.13 bps increased from prior closing of 1.5667.
US stocks fell slightly from all-time highs as tech shares faltered ahead of a big batch of tech earnings. Microsoft Corp and Alphabet Inc will report their earnings results after the bell today. Tesla also contributed to the decline as it fell to a two-week low even after posting their record profit yesterday. With much of the earnings optimism already factored into the market standing at record highs, investors have been harboring for an even stronger performance. With about one third of the S&P 500 companies reporting their results so far, about four out of five have either met or topped their revenue estimates. On the pandemic front, there have been signs that vaccinated Americans may soon be told that masks are no longer required to be worn outside. Copper neared record highs on the US administration’s plans for an infrastructure package and oil climbed after OPEC+ projected a strong recovery despite recent concern demand from the surge in coronavirus cases in India.
Conference Board Consumer Confidence index in April surged beyond the consensus, adding to the forecasts that GDP will return to pre-pandemic levels very soon. Aggressive fiscal policies and recent improvement in labor conditions have dominated the mood. Meanwhile, FHFA House Price Index in Feb slightly declined to 0.90% from prior of 1.00% vs. 1.00% consensus. The Fed kicks-off its two-day policy meeting today and will announce its rate decisions tomorrow at 11:00 AM (PT).
The curve has bear-steepened with UST 10-Year yield up 2.13 bps.
This Week's Events
  04/26 Durable Goods Orders 05:30 Mar P 2.30% 0.50% -1.20% -0.90%  
  04/28 MBA Mortgage Applications 04:00 23 Apr - - 8.60% -  
  04/29 GDP Price Index 05:30 1Q A 2.60% - 2.00% -  
  04/29 GDP Annualized QoQ 05:30 1Q A 6.90% - 4.30%    
  04/29 Initial Jobless Claims 05:30 24 Apr 539k - 547k -  
  04/29 Continuing Claims 05:30 17 Apr 3590k - 3674k -  
  04/30 U. of Mich. Sentiment 07:00 Apr F 87.40 - 86.50 -
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