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Market Commentary

Market Commentary

Today's Coupons
  10-Year Notes   101-14 (-10.5)  
  FN 3.5% Coupon   103-07 (-04.5)  
  Support   2.236%  
  Resistance   2.133%  
Thursday, June 8, 2017
Treasuries are moderately lower across the curve this morning ahead of former chief FBI Comey's testimony. The UST 10-Year yield is currently at 2.206% after closing at 2.174% prior.

Investors have been focused on today's political events which have been the main driver of the market throughout the week. The ECB announced that it was leaving its key policy rates and the terms of its QE program unchanged, causing a sell-off in treasuries overnight. Then, just ahead of former FBI chief Comey's anticipated testimony before the Senate at 7:00 AM (PT), the sell-off has continued. The main focus on his testimony will be on the Q&A session, since his prepared statement was already released yesterday. Then at 2:00 PM (PT), the outcome of the UK elections regarding PM Theresa May's majority will be released.

This morning we received the Initial Jobless Claims for the week ending on June 3rd, coming in at 245k after an upwardly revised 255k from the week prior. We also received the Continuing Claims for the week ending on May 27th which came in just below expectations at 1917k versus 1920k per consensus. The weekly Bloomberg Consumer Comfort read at 49.90, down from 51.20 in the previous week.

The curve has bear-steepened with the UST 10-Year up 3.2 bps from prior closing.
This Week's Events
  06/05 Nonfarm Productivity 05:30 1Q F -0.10% 0.00% -0.60% -  
  06/05 Unit Labor Costs 05:30 1Q F 2.40% 2.20% 3.00% -  
  06/05 Markit US Services PMI 06:45 May F 54.00 53.60 54.00 -  
  06/05 Markit US Composite PMI 06:45 May F - 53.60 53.90 -  
  06/05 Factory Orders 07:00 Apr -0.20% -0.20% 0.20% 1.00%  
  06/05 Durable Goods Orders 07:00 Apr F -0.60% -0.80% -0.70% -  
  06/05 Durables Ex Transportation 07:00 Apr F -0.20% -0.50% -0.40% -  
  06/06 JOLTS Job Openings 07:00 Apr 5750 6044 5743 -  
  06/07 MBA Mortgage Applications 04:00 2 Jun - 7.10% -3.40% -  
  06/07 Consumer Credit 12:00 Apr $15.000b $8.197b $16.431b $19.536b  
  06/08 Initial Jobless Claims 05:30 3 Jun 240k 245k 248k 255k  
  06/08 Continuing Claims 05:30 27 May 1920k 1917k 1915k 1919k  
  06/08 Bloomberg Consumer Comfort 06:45 4 Jun - 49.90 51.20 -  
  06/09 Wholesale Trade Sales MoM 07:00 Apr 0.20% - 0.00% -  
  06/09 Wholesale Inventories MoM 07:00 Apr F -0.30% - -0.30% -  
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