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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   1.559%  
  Support   1.658%  
  Resistance   1.474%  
  FN 2.5% Coupon   103.781 (00)  
  Wednesday, May 26, 2021
Stocks Gain as Fear of Inflation Dwindles
The market opened today's session with treasuries higher across all maturities. The 10-Year Treasury yield is currently at 1.5537, 0.51 bp lower than prior closing of 1.5588.

US stocks rose as Federal Reserve officials’ statements downplayed inflation risks. The S&P 500 Index extended its monthly advance rising 0.2%, with over 300 of its companies seeing gains. Similarly, the tech-heavy Nasdaq 100 outperformed, rising 0.3%. Dick’s Sporting Goods and Abercrombie & Fitch were on the rise after reporting better than expected estimated results. GameStop and AMC rallied as well, delivering more losses to skeptics who have piled on bets against the two companies. As Fed officials repeat that inflation will be transitory, US three-month 10-Year implied swaption volatility has declined. Elsewhere, Bitcoin continued its surge as it traded near $40,000. In upcoming news, banks will be the main focus on Wednesday, as CEOs of the biggest lenders start the first of two days of testimony before Congress. In the Economic Calendar, the U.S. Initial Jobless Claims, GDP, Durable Goods and Pending Home Sales reports are to be released on Thursday.

The curve has bull-flattened with UST 10-Year yield down 0.51 bp.
This Week's Events
  05/24 Chicago Fed Nat Activity Index 05:30 Apr 1.20 0.24 1.71 -  
  05/25 FHFA House Price Index MoM 06:00 Mar 1.00% 1.40% 0.90% 1.10%  
  05/25 New Home Sales 07:00 Apr 950k 863k 1021k 917k  
  05/26 MBA Mortgage Applications 04:00 21 May - -4.20% 1.20% -  
  05/27 Durable Goods Orders 05:30 Apr P 0.80% - 0.80% -  
  05/27 Initial Jobless Claims 05:30 22 May 425k - 444k -  
  05/27 Continuing Claims 05:30 15 May 3680k - 3751k -  
  05/28 Personal Income 05:30 8 May -14.30% - 21.10% -  
  05/28 Personal  Spending 05:30 Apr 0.50% - 4.20% -  
  05/28 Wholesale Inventories MoM 05:30 Apr P 0.70% - 1.30% -  
  05/28 Retail Inventories MoM 05:30 Apr -2.00% - -1.40% -  
  05/28 University of Michigan Sentiment 07:00 May F 83.00 - 82.80 -
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