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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   1.630%  
  Support   1.645%  
  Resistance   1.432%  
  FN 2.5% Coupon   103.45 (+0.19)  
  Thursday, May 20, 2021

The Tech Sector Leads US Stocks To Bounce Back After Positive Job Reports

The market opened today's session with treasuries higher across all maturities. The 10-Year Treasury yield is currently at 1.6403, 3.07 bps lower than prior closing of 1.6710.

Led by tech companies, US equities rose after the Initial Jobless Claims Report came in with a new pandemic low against the prospect of higher inflation. The positive job report came in at 444,000 versus the expected 450,000. The Nasdaq 100 Index rose 1.6%, leading all the main US benchmarks higher, with gains in mega caps such as Apple, Microsoft and Tesla. Similarly, tech stocks rallied on the S&P 500 Index with a 0.8%, with nine of the main industry groups climbing. Cryptocurrencies stabilized after suffering a large drop, with unexpected swings from Bitcoin. Oil fell, extending to a three-week low. Concerns of accelerated inflation leading authorities to scale back on stimulus have weighed in heavily on risk assets in recent sessions. The minutes from the Federal Reserve’s latest meeting showed that there were officials who are open to scaling back bond purchases if the U.S economy continues to progress rapidly. In Europe, equities have rebounded from a two-week low as investors focus on the region’s economic reopening over inflation concerns. IMF Director Kristlalina Georgiva and ECB President Christine Lagarde will speak today at the Vienna Economic Dialogue. On May 21st, data on existing US home sales are due.

The curve has bull-flattened with UST 10-Year yield down 3.07 bps.
This Week's Events
  05/17 Empire Manufacturing 05:30 May 23.90 24.30 26.30 -  
  05/18 Building Permits 05:30 Apr 1770k 1760k 1766k 1755k  
  05/18 Building Permits MoM 05:30 Apr 0.60% 0.30% 2.70% 2.30%  
  05/18 Housing Starts 05:30 Apr 1704k 1569k 1739k 1733k  
  05/18 Housing Starts MoM 05:30 Apr -2.00% -9.50% 19.40% 19.80%  
  05/19 MBA Mortgage Applications 04:00 14 May - 1.20% 2.10% -  
  05/20 Initial Jobless Claims 05:30 15 May 450k 444k 473k 478k  
  05/20 Continuing Claims 05:30 8 May 3620k 3751k 3655k 3640k  
  05/20 Leading Index 07:00 Apr 1.30% 1.60% 1.30% -  
  05/21 Markit US Manufacturing PMI 06:45 May P 60.10 - 60.50 -  
  05/21 Markit US Services PMI 06:45 May P 64.40 - 64.70 -  
  05/21 Markit US Composite PMI 06:45 May P - - 63.50 -
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