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Market Commentary

Market Commentary


Today's Coupons
  10-Year Notes   1.494%  
  Support   1.668%  
  Resistance   1.505%  
  FN 2.5% Coupon   103.06 (+0.094)  
  Thursday, June 17, 2021

US Stocks Fluctuate as Yields Fall after Fed Meeting

The Market opened today's session with treasuries higher across all maturities. The 10-year Treasury yield is currently at 1.5193, 5.61 bps lower than prior closing of 1.5754.

US stocks fluctuated as investors rotated back to growth oriented stocks in response to future US interest rate increases. With tech shares rising, the tech-heavy Nasdaq 100 Index gained 1.2% to a record high, with Apple and Nvidia leading gains. The S&P 500 Index fell 0.2% and the European Stoxx 600 fell 0.1%. During Wednesday’s meeting, the Federal Reserve Chair, Jerome Powell acknowledged the risks of inflation and stated that policymakers had begun a discussion about scaling back bond purchases. Two rate increases are to be expected by the end of 2023, a faster-than-expected pace of tightening. This change marked a turning point in the Fed’s communication to global markets, which had been extremely dovish so far. While Powell downplayed the risk of any immediate rate increase, some investors interpreted his comments as preparing markets for a hawkish tilt and an eventual tapering. His remarks followed the Fed’s latest projections, which included upward revisions to its outlook for inflation and interest rates. Elsewhere, CureVac NV plunged 43% in German trading after a study found that its Coronavirus vaccine fell short of targets. On Friday, the Bank of Japan releases monetary decisions.  

The curve has bull-flattened with the UST 10-Year yield down 5.61 bps.

This Week's Events
  06/15 Empire Manufacturing 05:30 Jun 22.70 17.40 24.30 -  
  06/16 Building Permits 05:30 May 1730k 1681k 1760k 1733k  
  06/16 Building Permits MoM 05:30 May -0.20% -3.00% 0.30% -1.30%  
  06/16 Housing Starts 05:30 May 1630k 1572k 1569k 1517k  
  06/16 Housing Starts MoM 05:30 May 3.90% 3.60% -9.50% -12.10%  
  06/16 MBA Mortgage Applications 05:30 Jun 11 - 4.20% -3.10% -  
  06/17 Initial Jobless Claims 05:30 Jun 12 360k 412k 376k 375k  
  06/17 Continuing Claims 05:30 Jun 5 3425k 3518k 3499k 3517k  
  06/17 Leading Index 07:00 May 1.30% 1.30% 1.60% 1.30%
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