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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   99-07.5 (+02.5)  
  FN 3.5% Coupon   99-00 (+01)  
  Support   3.111%  
  Resistance   2.759%  
Thursday, June 07, 2018
Treasuries are slightly higher across the curve this morning from yesterday’s close. The UST 10-Year yield is currently at 2.971% after closing at 2.973% prior. 
Treasuries continued to add to its recent losses overnight as U.S. stocks saw gains, but have crawled back to erase some of those losses since. This morning we received the Initial Jobless Claims for the week ended June 2 which fell 1k to 222k from an upwardly revised 223k prior. Recent levels have continued to suggest that the labor market remains relatively tight. Continuing Claims for the week ended May 26 jumped 21k to 1741k from a downwardly revised 1720k prior. We also received the Bloomberg Consumer Comfort reading for the week ended June 3 which came in at 54.80 versus 55.20 prior.

Later today at 9:00 AM (PT), the 1Q Household Change in Net Worth will be released. Then at 12:00 PM (PT), the April Consumer Credit data will be available and is expected to rise from $11.622 Billion to $14.000 Billion month-over-month. Investors will shift their focus on next week’s FOMC meeting which begins on Tuesday with the announcement of its decision to raise or hold interest rates on Wednesday.

The curve has bull-flattened with the UST 10-Year yield down 0.2 bp from prior closing.

This Week's Events
  06/04 Factory Orders 07:00 Apr -0.50% -0.80% 1.60% 1.70%  
  06/04 Durable Goods Orders 07:00 Apr F - -1.60% -1.70% -  
  06/04 Durables Ex Transportation 07:00 Apr F - 0.90% 0.90% -  
  06/05 Markit US Services PMI 06:45 May F 55.70 56.80 55.70 -  
  06/05 Markit US Composite PMI 06:45 May F - 56.60 55.70 -  
  06/05 JOLTS Job Openings 07:00 Apr 6350 6698 6550 6633  
  06/06 MBA Mortgage Applications 04:00 1 Jun - 4.10% -2.90% -  
  06/06 Nonfarm Productivity 05:30 1Q F 0.60% 0.40% 0.70% -  
  06/06 Unit Labor Costs 05:30 1Q F 2.80% 2.90% 2.70% -  
  06/06 Trade Balance 05:30 Apr -$49.00b -$46.20b -$49.00b -$47.20b  
  06/07 Initial Jobless Claims 05:30 2 Jun 220k 222k 221k 223k  
  06/07 Continuing Claims 05:30 26 May 1735k 1741k 1726k 1720k  
  06/07 Bloomberg Consumer Comfort 06:45 3 Jun - 54.80 55.20 -  
  06/08 Wholesale Trade Sales MoM 07:00 Apr - - 0.30% -  
  06/08  Wholesale Inventories MoM 07:00 Apr F 0.00% - 0.00% -  
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